Tenants in Common vs LLC for rental investment on H1B

[Meghanath Reddy]

Hello BP,

Context: I and a couple of friends are trying to invest in a rental property in Austin. I was wondering what's the best way to hold the title and own this rental property? From my research, tenants in common and LLC seems to be the two common strategies to do this. We are all on H1B status in the US and will be applying for mortgage as well. We will be hiring a property management firm for an LLC and working for it as we aren't allowed on the work status. One of us is from Seattle and 2 others are from Austin.

1. What are some obvious flags to consider apart? From your experience, have you done this before or had friends do this that faced difficulties or experience we can benefit from? 

2. Are there any other factors or strategies to consider apart from these in a partnership? 

3. Would there be any specific issues on financing w.r.t to TIC vs LLC for folks on H1B?

Thanks