Let me preface this by saying that I`m not an attorney, and that you should seek legal advice from a professional before taking any type of advice from me.
If it were me renting the property out, I`d form a corporation and let that entity own the house. If the "renter" injures himself, or his or her buddies come by and hurt themselves, then it`s highly likely that you could be liable since you own the place -- and if they sue you, your assets are at risks...
With a corporation, you limit your risks/assets.
Many real estate investors who own multiple properties will typically form multiple corporations.
For example... john doe owns 30 rentals... he may create 10 corporations, whereby each corporation may own 3 properties (30). That way, if someone sues him, all 30 properties aren`t at risk, but are limited to the 3 owned by that corporation.
Hope this makes sense.
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