Of course, if you then generate additional taxable income, that is something you can work to mitigate with your CPA.You could choose to form a self-directed IRA and invest the money directly into real estate.  

They build out the Pro-forma for you so you have an idea of what you are getting into.

They are building new fourplex units and advertising compelling cap rates in their pro formas.

Obviously new construction since that's the only way you can choose adjacent houses.We want to form a social connection by living next to each other, but don't want to be formally attached such as with an LLC etc.

Although the broker is claiming it is under-rent and a pro-forma NOI can be as high as $52,883.

A 20% increase in property taxes (or anything higher than 5%) can really screw up your multi-year pro-forma and your projected returns.In Texas, you are allowed to protest the value the appraisal district appraises your property at.

If I form a LLC, I do not want to be subject to self-employment tax.  

How does someone form a Texas series LLC?

If your holding for cash flow, make sure your cash flow pro forma is as accurate as possible.  

Who's telling you a pro forma lower-than-50% expenses story?