Day one. Where do I get started?

[Ryan Den Otter]

My passion lies in rental properties. I have been looking at doing rentals for years, and today I have decided that it is time to cut all of the dreaming and hoping and wishing, and get started. But, I am not sure how to get started. There seems to be a plethora of things to do, and no clear winner for priority.

My wife and I have been renting for a while, and we are hoping to start off by 'House Hacking' (Buying a split-level, and renting one level while living in the other) as we can't afford to buy a property solely for investment (minimum down payment is 25%). I really want to do this right, and make sure that I am not setting myself up for a headache in the future. One of the things that I am concerned about is liability. I want to mitigate liability, and I believe an LLC corporation is the way to go. Do any of you have a template for the Operating Agreement specifically set up for holding and managing real estate?

Also, any 'gotchas' or things that you wished you had known when you got started would be greatly appreciated!