I understand TX law is reasonably sensitive to property owners IF they follow the law.Dumb money: trying to save a couple of bucks, cut corners and trying to do your first eviction (from 1,500 miles away, no doubt) and use cheap as an excuse for "learning how it works"There are professional landlords and amateur landlords.

So, I am a bit sensitive to just handing them out.  

I think it is also more sensitive to the tech economy, especially the non-prime stuff down there.

I am looking for a way to safeguard for this.  

Paul, not necessarily, officers and director or members are liable for their acts amongst each other and to the public should they not take reasonable care or commit illegal acts.Might be hard for a start up business to obtain performance bonds and obtain errors and omissions coverage along with a ton of liability coverage, ask your agent.Another safeguard might be a Hold Harmless and Indemnification Agreement made by and between the members, that can help keep you out of court in some cases, the indemnification is only as sound as the financial strength backing it up and there must be consideration for the Agreement, consideration may be viewed in light of the loss suffered as well as the conduct of those entitled to being made whole.

@Tom S.Tom, thank you for bringing up a very important point on safeguarding assets (or anything else): The cost of protection needs to be consistent with the risk of loss.

I realize this is a very location sensitive post so if you could provide your primary investing area it would be extremely helpful.

http://www.biggerpockets.com/pages/webinarreplaytime sensitive (6 hours left)

Bill Gulley No worries, it almost bit us in the butt  a month ago :) That's why I am probably more sensitive to it! 

Insurance will be more on the property, but likely less on a per unit basis.A SFD will be more marketable and sensitive to utility and functionality than a multi-family structure.