I currently own a home, and I am interested to buy a 2nd property (Condo) for rental investment. I appreciate if you can help me with the following:
1) What is the complication if I were to buy the property under my name before setting up LLC and transfer the property over? Or will it be simple if I were to set up LLC first before buying? I am not familiar with how the lender would treat my application under different entity -- me VS llc.
2) If I did not set up LLC but instead buy the property directly under my name, would I get a tax deduction on the property expense? like the interest, property tax, etc?
3) I heard that LLC must show a profit 2 years out of 5 years. So if I were have the investment property under the LLC, and I did the deduction of depreciation over 27.5 years, I think I would be constantly showing negative cash flow. So, how would I make the property turn profit 2 years out of 5 ? Thanks in advance for your time and effort! shawn
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