@George JanCollections violations and licensing requirements are the main liabilities I'm talking about here. 

When you sell, you will likely get appreciation - but that is not the main purpose of your investment.Direct SF ownership might be safer - also, it might not be safer.   

I've read a few guides about turning the main on gradually, going fixture to fixture one at a time, etc.

Mainly because you remind me of the unsavory individuals I have had the displeasure of meeting.  

Several things to consider: 1) One of the main purposes of segmenting your assets into separate LLC's is so that your personal net worth or equity in other business ventures or properties isn't exposed, so unless you have a high net worth or a lot of equity in a property, it might not be worth bothering going the separate LLC route, especially when it restricts your financing of the property.  2) Most any commercial financing you get from a local bank for a small property is going to have recourse anyhow and require that you sign a personal guarantee, so you're still personally on the hook to the bank even in the case of a commercial loan.  3) If you're a newer investor and buying a deal that's tight on cash flow, or if you don't have a ton of cash sitting in the bank already, your greatest risk factor as an investor is your investment failing economically due to poor financing terms or not operating the investment properly, not because you get sued. 

I didn’t know about the chip plant, I will look in to that.are those places close enough to Dallas to be affected by the city and its real estate or is it mainly because of the job growth in the area? 

The sewer main is one of the most important, and most valuable parts of the property...so, why wouldn't we inspect that too?

If our main goal together is to acquire as many properties as possible as fast as possible - it feels like this leaves us with a smaller tax return, thus less capital to use to reinvest into new properties. 

One of the main benefits of participating in the Section 8 program is knowing that the rent will be paid each month (or at least the Housing Authority portion of it) - Now that's gone. 

Business Journal (BizJournals) is the main one I read, but you can find others. bizjournals post about the new developments and changes in the city.