Rental home investing through your own LLC

Tenants pay monthly rent. A later sale to a buyer may also bring a gain if the property has gone up in value.

Monthly rent minus the mortgage, property taxes, insurance, repairs and vacancy costs. Some owners also gain when they sell, but values can fall as well as rise.

• Basic budgeting and reading a simple cash flow sheet
• Screening tenants fairly and communicating clearly
• Organizing repairs and contractors

• Landlord-tenant law varies by state and city (deposits, notices, evictions, rent rules), so check yours before you buy
• Fair housing rules apply to advertising and screening tenants, so learn them before you list
• Many cities and counties require a rental registration or license, so check with yours
• Landlord insurance is different from a homeowner policy, so ask an agent what you need
• Moving a mortgaged property into an LLC can trigger lender rules, so check with your lender first
• Vacancies and big repairs can cost more than the rent brings in, so keep a cash reserve
• Tax treatment is complicated, so talk to a CPA. This is not financial advice

Startup costs are typically estimated at around $30,000 to $100,000, depending on the property, down payment and your area. Vacancies and big repairs can cost more than the rent brings in, so keep a cash reserve.

Monthly revenue is typically estimated at around $1,200 to $4,500, depending on the property, location and vacancies. Time needed is modest, at least around 4 hours a week, and a property manager can handle tenants if you prefer.

Landlord-tenant law varies by state and city, so check yours before you buy. Check fair housing rules for advertising and screening, local rental registration or license requirements, landlord insurance, and lender rules before moving a mortgaged property into an LLC.