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Buying a home has numerous ancillary costs and liabilities. You are responsible for the maintenance, liable for mechanical failure, market risk, buying and selling commissions, and the increased monthly cost on a mortgage. Renting offers the flexibility to come and go. You are not responsible for most maintenance, liable for most mechanical failures, market risk, buying and selling commissions, or increased monthly costs. Renting offers a liquidity that buying canât. Over the long-term, the stock market has crushed the housing market.
Among your top goals as a rental property owner should be maximizing your rent income while minimizing expenses and liability. If you own rental property, one of the biggest advantages of an LLC is that it can help protect your personal assets while allowing you to reap some tax advantages.