Q: Buy a home/condo and lease it to my business?

[BackOffWarchild]

Here's hoping there's a real estate pro or someone with experience that can help with a question:

Commercial office space is insanely expensive in my area, and this summer/fall I may need office space for a small (SMALL) business. Some brief shopping has shown me that 150-200 square foot offices are going to run me in the $400-600 per month range, and most want long-term lease commitments, some with a minimum of two years, and serious deposits.

At the same time, I can purchase a 300-400 square foot studio in the $40k range, and with my expected down payment, rate from my bank, and ballpark fees (HOA and taxes) be paying somewhere in the range of $400-500 per month (15 years).

Is it legal for me, as an individual, to purchase a property, then lease it to my LLC? In the event my side business collapses, I would have a home that rents for a little (not much) more than the mortgage, and be able to recover equity in a sale (provided the market doesn't tank). Whereas I have concerns about the size of the down payment in a commercial RE lease, and that I could potentially lose that investment if my business fails.

Thanks in advance, brah(s).

 

[ThatOneDude]

I would assume people do this all the time because your private property and your llc are separate.




*not a lawyer or real estate pro or even ammy

 

[Jesus X]

in for when backoff warchild gets audited and arrested

on a some what related real estate note I always wanted to buy one of these and tour the entire west coast.

 

[jason73]

Wow that is dirt cheap .you won't get a small used apartment here for less than 200k

 

[Deleted member 1]

Is it legal for me, as an individual, to purchase a property, then lease it to my LLC?

Yes. The whole point of incorporating.
And on the individual side you need to count that as rental income.
You'll be able to deduct the expense on the LLC side and incur the tax on the private side.

 

[Deleted member 1]

BTW, it won't really matter I'm sure, but be careful being too open about this on the ground. It's not illegal, but a lot of condo HOAs prevent businesses from being run. This is supposed to prevent foot traffic, so I'm sure you will be fine if you are using the condo space for something other than retail and clients.

 

[ThatOneDude]

BTW, it won't really matter I'm sure, but be careful being too open about this on the ground. It's not illegal, but a lot of condo HOAs prevent businesses from being run. This is supposed to prevent foot traffic, so I'm sure you will be fine if you are using the condo space for something other than retail and clients.

Pretty sure he runs a tranny modeling agency. Probably shoots on the couch in his office

 

[Deleted member 1]

Pretty sure he runs a tranny modeling agency. Probably shoots on the couch in his office

 

[BackOffWarchild]

Jesus, that makes me think I'm going into the wrong line of work. If anyone was born to do a trans-porn studio...

And no, it'll likely be just me, 5-8 hours per day. One desk, 3 chairs, one sleeper love seat (for job interviews), and less than $1k in computer equipment. I may need a television and PS4, though.

 

[IschKabibble]

I may need a television and PS4, though.

Every proper business needs a television and PS4.