My question involves real estate located in the State of: IL
I am planning to purchase a small multi-family (2-4 units) property and need advice on how to title/hold the property.
Planned purchase would be out of state but in a location (IL) that I visit often.
Could pay cash for property but would not if there was a reason not to. Price range 250K-300K.
Intention is to live in one unit while visiting, renting out the other unit(s).
In a few years will probably live in unit fully time while looking for single family home in area. Would then move out and rent all units.
Have formed an LLC with intention of having LLC own all or part of the property to avoid personal liability/protect personal assets.
Have not taken an action yet. Trying to understand options and consequence before moving ahead.
What would be the best way to title/hold the property? My thoughts on my options would be a.) LLC own entire property and I would be a tenant. Believe LLC would have to charge me going rental rate. This is doable but not preferred. If that was the case I would probably not pay cash but would take out a mortgage. Could LLC charge me below market rate of say $50 a month? or b.) have LLC own (I buy and sell to LLC) portion to be rented. Not sure how to divide property..50/50?, rentable square footage plus half of common areas? Is there another better option? I do want to require security deposits, etc that I understand I would not be required to do under owner-occupied laws.
Thank you in advance for your thoughtful input