Comment by sokoloff
5 hours ago
It would dramatically reduce the availability of rental properties. So, if you really hate renters, it’s a good thing I guess.
Extremely low chance that I’m going to put my entire net worth on the line to own and rent out housing in my own name.
Exactly zero chance that I’ll do it in a multi-family or apartment building.
Holding these things in corporate title is sensible risk management and compartmentalization.
AIUI LLCs for rental properties have very little protective power in court, and are easily shredded by plaintiffs' attorneys. If you thought that you were getting some degree of legal protection from holding your small multifamily in an LLC- you're probably not.
For example- do you have a mortgage? Almost certainly in your name, you have to be very large to receive a mortgage as a corporation. If you're holding a property in an LLC but the mortgage in your name, that's classic piercing the corporate veil and will take an attorney about 10 minutes to shred that in court
Why? Same cash flow it just goes to mortgage you own instead of landlords mortgage + their profit margin. It would actually be cheaper for current renters because of this.