Another Partnership Structuring Question

[Toan Pham]

My friend and I are planning on investing in a SFR rental property in Houston and are unsure the best route to take in regards to structuring the partnership. I've gone through forums and other online resources but still have some questions about the best route to take.

We initially thought about creating a Series LLC then pooling money for the initial investment and getting financing from a portfolio lender under the LLC. However, as interest rates charged to LLCs are so much higher this way, we've also discussed one of us being the one to take out a conventional mortgage. If we go the second route, there would be no LLC so how would we protect the other partner's interest? Some other kind of legal agreement?

We are definitely open to other structures so any advice would be great. Thanks for your time.