A recent article in the Arizona Republic brings up a good point that all investors should consider – having a separate LLC to govern each investment property you own.
For liability reasons you should never own investment real estate in your own name. Generally, if a real estate investor is receiving only passive income (such as the rent of a rental property) an LLC (limited liability company) is recommended. In fact, you should form an LLC for each of your investment properties. The reason is that if one rental has a major problem, such as mold, for which there may not be insurance coverage, only that LLC would have liability for any personal injuries due to the mold. Otherwise, all of your personal assests, including your other rental properties, could have liability.
Source: Christopher Combs, a real estate attorney with Combs Law Group
