Hello, my strategy is mostly long term investment, buy a property and rent it out long term. I am planning to own 3 to 5 multi family properties over time.
Some told me rental-property ownership will expose me to financial risks such as potential environmental-contamination claims, fire-related claims, slip-and-fall claims and other injury claims. If I put the rental investment under an LLC then my personal assets aren’t at risk if an accident or other incident occurs on premises.
My question is should I form a new LLC for each of the multi family property in order to limit my liability (as opposed to putting all 5 properties under one LLC)?
If I put all 5 multi family homes all under one LLC, then it kind of defeats the purpose of limiting my liability. If I lose in a claim, then judgement can be made against all my assets in the LLC, ie all 5 multi family homes.
If I form a LLC for EACH property, then my exposure will be restricted to the property where the claim arises. Does it make sense?
Any feedback would be appreciated.