Should I own my first home as an entity? Specific advice on my 1st deal plz

Okay, a little background information, I am a young gun (26) and almost a rookie agent (waiting on PSI) but I am about to buy my first home. My plans for the future include pyramiding properties and managing them for income, maybe selling a few in the beginning to build up some cash. So I have read that you should not own a property in your own name if this is what you want to do, but rather in an entity.

This will not be a traditional buy, my parents are going to help me since I’m starting out and cash offers are heavily favored on this as-is foreclosure. They are putting the money in my account, I am going to make a cash offer, assuming the deal goes through, I am going to take out a heloc to pay them back. The house has an unfinished basement and a move-in ready upstairs. It looks like someone took a hard money loan, did a great job, but ran out of money or time or both. It is subject to first right.

My plan is to finish the basement and make the few minor repairs that it needs, take out a heloc, pay my parents, live in the basement, and rent the upstairs. Should I do this in my name or in an entity? If so, what type? LLC, S-Corp, C-Corp, Corp? I remember reading LLC is either the best or the worst, would it be stupid to just hold it in my name until I at least acquire a 2nd property and then start divesting them into entities?

What do you think an entity will provide you? I’m not seeing any benefit to justify the cost, especially when you will have to pay market rent to the entity for your unit to legitimize the entity.

You should do it in your name unless there is a reason to put it into an entity. An entity is set up to solve a problem. You will know that you have a problem and that will dictate the kind of entity you need. For example if you are going to buy a large deal with partners. You will need an LLC to buy the property with partnership agreements.

If you are just buying a house you will do better by just buying it.

Why do you think that you will be able to get a heloc (home equity line of credit)?

Have you talked to any lenders about that plan and what it will cost? Otherwise you might be better served by just paying off your parents monthly, if that is an advantage to them.