Which business entity is right for me?

[Thomas Manglaviti]

I work for a multifamily real estate investment firm out of New York as an acquisitions analyst, and from my experience/research I feel that I have a strong grasp on the analysis and how to identify target markets. I am now at a point where I would like to build my own portfolio despite having little capital of my own to contribute (I have been aggressively paying down my student debt over the years). I have reached out to family and friends to contribute capital and have been successful in getting them on board for my first project. 

For my first deal I am targeting a duplex in Texas in the $150,000 - $200,000 range. I would like to secure a conventional mortgage for the deal to cover 80% of the purchase price and finance $50,000+ for the 20% down payment and rehab using 10% of my own capital ($5,000 or so) and the remaining from family/friends. I have an excellent credit score and believe that I personally would be approved for an acquisition of this size. Originally I had thought I would create an LLC and sign for the loan personally so that I would be the general partner and the other investors would be limited partners, I would also be able to set up an operating agreement that would define how cash flows are paid to the investors (as the GP I would get a promote over a preferred return for assuming the risk and managing the deal). However, from the research I have done it seems that banks do not provide conventional financing for newly created LLC's, also if I were to create an LLC I am uncertain as to whether it would have to be in my home state of New York, Texas, or both.

Given my situation, which business entity should I use, which state(s) should I register in, and how will I be able to accept funds and pay distributions out of this entity?