Additionally, I’ve been wondering if it might be possible to create an LLC, rent my house to the LLC through a formal contract, and then have the LLC operate the Airbnb.

Hi everyone, We are looking into a deal to purchase a 5 unit apartment building that currently operates as a short term rental.

I inquired about the possibility of a two-company structure: A traditional LLC that is the public face of the activities (collecting rents, paying contractors, etc.) and managing the Series LLC with each property in once cell in it (in this case, Series LLC is serving as a holding role).Again, one attorney said that would be much better than a standalone LLC and that is recommended approach, and the other said it is waste of time and money since there are some requirements from Texas Real Estate Commission, which is requiring being a licensed broker in the state to operate in the managing LLC.So, just want to hear what other Texas investors are doing when it comes to series LLCs regarding these issues. 

Turnkey is generally a passive investment strategy, where you just buy from an operator and turn it over to them to manage.

Their book is super helpful, and so far I'm guilty of at least half of all the newbie mistakes they talk about, so I expect my rental operation to improve as I implement their advice over the course of next lease term.

And when people get tunnel vision for lowest $ down, they tend to not give attention to the revenue generation of it, the operations, and that's a VERY dangerous combination of high leverage and not so-good revenue. 

We operate in a broken system that is ripe for abuse and fails to protect us.

Those who run such a failed operation surely will have significantly degraded the assets and operations as well.

Hey Becky,When you sell the property, the LLC will still technically own the property until it is formally restructured, so you will need to amend the LLC’s operating agreement and update its ownership structure to reflect the change, ensuring the absent partner’s interests are properly dissolved, and taxes are handled accordingly.

Passive investing takes time up front to educate yourself, find operators and deals - but after you invest, you have limited obligations.