The barrier is the additional complexity - now you are operating two sets of books, and filing two tax returns, and have more operating agreements, more state registrations, etc, need to manage cash better, need to keep in constant mind that your rents need to be a supportable FMV, which may require getting third party certification on your rents so that in the event of an IRS audit, what you have done is supported.In short...the size of the project, and the taxable income, need to be of enough scope to make all the additional costs and annoyances worth it. 

I've thought about it for a rental property, but it would require an internet connection, conceivably the tenant, in order to provide the feedback from the meter portion. 

however, that is not allocating anything to capex, maintenance and vacancy. if we allocate 3% to each, the COC return is 7.97%. 

To be sustainably successful requires a marketing budget of $5,000 - $10,000 per month PER market area.  

This can be a great workaround because many states require a physical address for your LLC, and a PO Box won’t cut it.

Most out-of-state investors will have an enormously difficult time navigating that process from afar, especially in a market like Detroit.We help folks with it but our projects generally require investors to be cash buyers.

Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more.

Hi Ashley, Most DSCR lenders will require documented rehab to cash out on the new appraised value, with less than 6 months seasoning.

I have a separate addendum for pets as part of the lease agreement which outlines pet waste pick up requirements and a hold harmless agreement which cover personal and property damages on behalf of the dog and its owners responsibility.

The minimum requirements to get the benefits of a series LLC is under TBOC Section 101.602(a)(1)-(2) which states that the series LLC must be included in the certificate of formation and company agreement, and the company must maintain separate records for the assets of each series.