Another Newbie with some questions

General Real Estate Investing
1

I have recently started looking more responsibly into my finances, and realized I have almost 0 assets besides my home. I am now looking to move into real estate, it may take years before I fully start investing.

My wife wants to run her own Salon, so we are looking at a property that will allow us to have a commercial/residental space inside. Our city doesnt allow this, but a connecting town does. Is this something we should consider? I am going to look at this property soon, and found out it was just sold in May, so I am confused.

Also should I form a LLC to buy this property, move in and have the LLC rent to my family, and then rent to my wifes business?

2

typically an entity is used to shield personal assets from business risk. since the property would also be your residence, this muddies the waters somewhat.

since your wife will have clients entering the premises daily on business, this creates risk. You would want to separate the asset (bldg) from this risk (people) by holding title in an LLC seperate from the wife’s business.

However, if the property owner is sued, this creates the same problem as if you are sued personally: your residence is at risk.

I’ll have to think on this some. anyone else have thoughts?