Hello
I am moving out of state and need to rent out my condo. I wanted to protect myself from Liability, and accidents - Hurricanes for example (The property is in Miami).
So basically I heard that is a good idea to place the property in an Multi Member LLC not a regular LLC, to protect your other assets. I went ahead and got a few quotes and decided to go for it. My idea was to have the condo in the LLC and then also buy "Landlord Insurance" to cover the walls, floors , etc from natural disasters, fire...hurricane..tenants lol, etc.
I went ahead and got a realstate lawyer to create the Multime member LLC and opened a business bank account. I called Geico, MetLife, Allstate, ..and some local insurance companies Estrella Insurance etc. None would sell "Landlord Insurance" for a condo in an LLC.
So great I cannot buy insurance for the condo if it is in an LLC, I wish I had known that before I created the damn LLC.
On top of that the property is paid off, and just having it in a Multimember LLC does not offer enough protection. I would have to get a loan against the property for like $50,000 as a strategy for asset protection. The lawyer and steps are driving me crazy, it seems that you have to no only create a multi member LLC but you then have to implement further strategies for asset protection. My lawyer said welcome to world of asset protection, is not for the faint of heart. I don't see the end of it...
So the decision to take at this point is ,
1- Keep the Multimember LLC and place the condo in it , and take all the risk (No insurance), implement the strategies to protect the asset and due to complicated taxes i guess with Turbox Tax Business.
2- Keep the condo outside on the LLC , buy some landlord insurance and hope you don't get a huge lawsuit someday. Maybe Taxes are easier.
Can you help me decide ?
A-It seems that a lot of people place their properties in LLC and just assume all the risk.
B-Other people don't create an LLC and just assume the risk
C-Other people don't create an LLC and do not buy Landlord Insurance.
Thank You !