Any debt you incur in an LLC that you are a partner/member in must be disclosed as your personal debt on a residential home loan application. This may not be reason enough to avoid an LLC since in the rehab biz you're (usually) not simultaneously buying a home thru conventional channels while borrowing rehab money at 12%.
That said, my attorney friend and I formed an LLC for investing.
#1 question: What are you planning to do with the property?
I am not an accountant or tax expert but the plan I use is to use a either an S or C corp for flipping and LLC for holding.
Any debt you incur in an LLC that you are a partner/member in must be disclosed as your personal debt on a residential home loan application. This may not be reason enough to avoid an LLC since in the rehab biz you're (usually) not simultaneously buying a home thru conventional channels while borrowing rehab money at 12%.
That said, my attorney friend and I formed an LLC for investing.
My 2 cents.