What are the advantages and disadvantages of buying LLCs for rental property?

Answer by Wray Rives:

I assume you mean buying rental property in an LLC as compared to buying it as an individual.

The primary advantage is the LLC will offer you some level of liability protection of your personal assets from any liabilities that may arise from the rental property.

The primary disadvantages are:

  • The cost and expense of setting up and maintaining the LLC(s)
  • If there is mortgage debt, banks tend to be less willing to loan to an LLC vs an individual.

What are the advantages and disadvantages of buying LLCs for rental property?