Rental Properties?

[Mangano's Gold]

Except for one we own outright, ours our mortgaged in our own name so a lawyer friend was really iffy on if deeding them to an LLC would even accomplish anything except more paperwork since the limited liability would probably not be valid.

Also, you may also be breaking the terms of your mortgage if you transfer ownership to an LLC. This is typically a state thing. What happens is that the mortgage company has a security in interest in your property, and they want that property to be in the same name as the mortgage.

On the tax front, kelli, you would have some federal issues. If/when you talk to a CPA be sure to tell them about the ~$50K in improvements. Some or all of that may increase the tax basis of the property, and potentially lower your taxable gain when you sell. Just an FYI.

[fidgiegirl]

On the tax front, kelli, you would have some federal issues. If/when you talk to a CPA be sure to tell them about the ~$50K in improvements. Some or all of that may increase the tax basis of the property, and potentially lower your taxable gain when you sell. Just an FYI.

Yes, my DH seems to think that we can do something with that. We will have to be sure to make an appointment soon.

We are not going to try to sell our place. If we get the short sale, we will rent it. If we don't, we will stay on.

I really appreciate all the advice. It's been an interesting journey and I appreciate everyone's helpful advice and questions.

ETA: Ooh, I just realized this post made it sound so final, like "no more advice needed!" But oh, if you have some, we continue to welcome it! And you will still be hearing from me as we move forward.

[Mangano's Gold]

Good luck with whatever you decide to do, Kelli. It is definitely an interesting real estate market out there.

[fidgiegirl]

Resurrecting this thread after a looooooong time to let you know that tonight we signed a 2 year lease to rent out our current home. We took a lot of the advice in this thread - we consulted with a CPA, we screened the tenants through a screening agency, we consulted Nolo legal books and talked to lots of landlord friends. Mr. Money Mustache was somewhat of an inspiration as well It helps that we are in a high-demand area, and we considered our pricing carefully.

While we can never be 100% certain, we have a good feeling about our tenants and are hoping for the best from this experiment!

I thought that after all the help and advice the community offered us that you deserve to know what the outcome has been!

Thanks all! No turning back now, so wish us luck!

[Rosemary]

Wow, Kelli! All your hard work will be paying off now in the form of an income stream from your old property and the beautifully renovated house you'll be moving to. Congrats!

[jennipurrr]

Great news! Glad to hear about the successful rental.