The main issues I see in Portsmouth is to thoroughly do your tenant background checks as I see a lot of people kicking doors when trying to rent.

I house hack my primary home in which I do a thoroughly credit check, background check and interviewing process.

The inspector was very thorough, he told me everything good, he didn’t find anything wrong.

Second, @Lisa Marie your thorough understanding of your husband's math is commendable.

Consider HOA regulations as they could pose additional risks, be sure to thoroughly review the Covenants, Conditions, and Restrictions (CCRs) regarding rental restrictions or limitations.Strength:Elderly tenants are inclined to move less frequently, resulting in reduced turnover.

It's crucial to conduct thorough market research, analyze potential properties, and evaluate their financial performance, including cash flow, cap rates, and projected returns.I recommend working with a local realtor familiar with the South Florida market to help you navigate the area, identify suitable properties, and provide guidance based on your investment objectives.If you have any further questions or need additional assistance, please feel free to ask.

If you're going to buy OOS, would highly recommend getting an experienced local investor (someone unbiased, not on the agent's team or anyone  trying to sell you something) to do a very thorough video tour of the property and at least the street before making an offer.

Hope it will give you some guidance.Impressive work, Costin.Almost as thorough as this one  from the IRS :) 

Remember, a good agreement makes a good deal better, but a bad agreement makes a good deal bad.Also, as @Dan Heuschele alluded to, if either of you performs any activities whatsoever while residents of California, the state of California's position is that you will have to register your LLC with the California Secretary of State (even if formed in Texas or some other jurisdiction), file the annual Form 568, and pay the annual $800 tax.Also, by forming an LLC in Texas, you may be subject to the Texas Franchise Tax.So really the only person who can answer the question of whether you need an LLC or some other entity/arrangement is a qualified attorney who thoroughly understands each partner's situation with respect to themselves and each other.If you need a reference to a good one, I have one. 

It's essential to understand the potential tax consequences before taking out a loan from a retirement account.Before proceeding with a 401(k) loan for the down payment on investment real estate, it's crucial to thoroughly research the rules and implications specific to your husband's retirement plan.