Most real estate investors put their property into an LLC rather than owning it personally in their

If you plan on buying a property to list on Airbnb or VRBO, then you should definitely consider registering an LLC and titling the property in the name of the LLC. There are two primary reasons for this. The first one is personal liability protection. Obviously, you don't know what these tenants are going to be doing in your home, or if one of them gets injured, then they might sue you. So you're going to want to have that layer of protection between your personal assets and the LLC's assets. But one thing you should be mindful of is that you should have the LLC before before you buy the property. The reason is because if you buy the property first and then you register the LLC and then you transfer the property into the LLC, that can trigger something called a due-on-sale clause, which basically means that the transfer from your name personally into the LLC is considered a sale, which then means that you have to pay back the mortgage in full. So definitely make sure you register the LLC before purchasing the property. And then when you do purchase the property and get the mortgage, make sure you let the bank know that you're going to be titling the property into the name of the LLC. The bank is still probably going to make you sign a personal guarantee, but the point is that you don't trigger the due-on-sale clause and transfer it from your name into the LLC's name later on.