[carnutzzz]

Sorry guys- but some are giving bad advice here.

Yes, an LLC is great for protection- each LLC should protect 1-3 properties.

You create a sole-proprietor LLC, which means it does not pay any taxes. Taxes are all claimed on your personal forms. Schedule E specifically which covers rental income/expenses.

You would not finance through the LLC- LLC's don't have credit, you do. You would secure financing yourself, then transfer the title of the property to the LLC.

Yes- professional advice is necessary before going too far.

Wil you avoid taxes? Depends- but not really.

Think about it- you rent it out for $1k a month x 12 months. That's another $12k in income for you for the year- that hasn't been taxed yet! Sure, you'll create expenses to offset that, but this isn't exactly the holy grail of tax-free income.