The best part is that you are making a positive impact on your providing housing for those who would not be able to afford living in said neighborhood.Managing the property and members are things the entire PadSplit team is good at.

Must meet self sufficiency test for 3-4 units on FHA though, which alot of properties in higher cost areas do not meet.Conventional allows 5% down on 2-4 units.

Thanks for your advice.Hi Cassandra, you provide great context and information!

Investing in both provides some diversification of assets. 

Either1) your startup takes off and you can distribute profit fast enough to pay off your debts, or2) you find another source of $100,000 a year (which barely even starts to pay down the $300k, but might provide a better chance for a better loan), or3) you BK and possibly lose the rental houses to creditors (hopefully not, but we don’t know how they are held), or 4) you sell the houses, take the tax hit, work with the IRS on a payment plan whose interest will be much lower than your CCs, and focus on the startup.  

And even though virtually every sponsor agreement allows me to share investment information with others who might be advising me on it (especially when club members are bound by an NDA), I still ask the sponsor if I can share it, because it's a test.

Can anyone provide any insight has to the success  rate of investing in Texas? 

This structure simplifies management, centralizes ownership, and provides an extra layer of liability protection.Tax-wise, the state where each property is located will still require income tax reporting and LLC fees.

Can you provide references or examples of successful projects you’ve funded?

For those who are unfamiliar, PadSplit is an affordable housing tech startup that provides a house-sharing service for working people.