(at the time and currently still new to the Texas landlord/investment business). 

I ask this question because I suspect at least 90% of people who post on BP about entity formation or transferring properties from their personal name to an LLC cannot articulate the risk they believe they are protecting against.

Its part of the cost of doing business.

@Jason Sung, I would certainly get a few opinions from multiple people.  

Sometimes people just get too busy and know that they can't brush up on all this stuff since most will only do a few transactions their entire life. 

So, making it clear from the start that you are running a professional rental business goes a long way towards avoiding those who are seeking just the opposite.

Tax sales sound great but in FLA its tax certs which are a business unto themselves the tax sales are better mainly land though.. we have done pretty good with land only in FLA.

How do you deal with people that don’t want to give user name and password for bank accounts, to verify income?

Get out in the community as much as possible and get to know more people.

Totally new world for me knowing there are properties off the market, wholesalers, and people that loan money just for this purpose, different from a bank, I have always thought we were doomed from finding a good deal as everything I found was already on the market...my little knowledge and limited believes got me trapped.