Now that I have read multiple posts and received recommendations from others and read BiggerPockets threads, I am inclined to create Entity structure to avoid any property liabilities and get tax advantages using income shifting strategies for my 1099 revenue from small IT LLCThis is what I am thinking and need some inputs from others on this channel.

Almost 4 years ago I made a shift in my RE portfolio that made a big impact on my income and total net.

It feels as if the shift to more of an apartment home is what helps with tenant retention.Having amenities on property, such as dog parks and fitness centers, help with retention, and being close to amenities also helps.I think the same can be said for most smaller multifamily, with having washer dryer hook ups, 2 to 3 beds, at east 1 1/2 baths, if you have some privacy for a yard would be a huge bonus.I really would stay away from pools for small multi families.

I think the key is to do these during slow or at least stable times and not during major market shifting factors like the interest rates increasing rapidly.  

You asked about the risks and benefits of using leverage in real estate investing.The reality is leverage cannot be avoided, usually, in real estate investing.The risks are you get over-leveraged and your don't have enough cashflow and reserves to weather a market shift, extended vacancy, or major repair.The advantage is you increase your ROI by using other people's money and as little of your own money as possible.

Lock in your rate before the market shifts to save on interest and then find the rockin' deal you've been waiting for.Let's get going!

The real test comes when the unexpected happens: market shifts, economic downturns, or unforeseen challenges.

The trick is to know when to shift gears!

I don’t really want to liquidate stock to pay off the HELOC, I can’t get my asking price for break even and so I can either A) take a loss on the sale or B) rent and cash flow a bit while I wait for the market to shift.

Working on my own mindset shifts from viewing success as a final destination but more as levels with it’s own set of new challenges and objectives.