The risk of not knowing all the existing encumbrances (all kinds of liens or other interests ) - on the real property is really huge.

However you'd be out the LLC filing fees in the latter situation, so the LLC would appear to be disadvantageous if viewed solely through the lens of income tax compliance.If you're looking to avoid tax I'd suggest you read up on a "like-kind exchange" aka a "1031 exchange". 

Austin and the surrounding areas (Cedar Park, Round Rock, San Marcos) offer lots of opportunities for rental  properties, and offer great places to visit.

Hola amigos, I am looking for lender recommendations in LA, me and my wife are very interested in real estate and want to take the first step towards owning our first property, either to move in or as rental property, still undecided.I'd like to know why you recommend that person and in what kind of project they helped you with.Much appreciated in advance!

I think you might be asking what kind of deduction you can take against your rental income? 

This is something one of my mentors kind of drilled into my head from his own buys here in Denver.

But generally speaking yes you can put that kind of money into the property if you get it at the right price.

What kind of professional knows about tax abatement incentives, systems development credits, etc?

20% down on that kind of loan with a min. of 660 credit score.

Here are some that I've visited and found very useful:https://www.meetup.com/Addicted-to-ROIhttps://www.meetup.com/RealEstateAtWorkhttps://www.meetup.com/Fixated-On-Real-Estate(it doesn't mean that everything else is worthless, only means that I didn't visit all of them ;)Also I found that some actively moderated Facebook groups are also very useful, in particular would recommend WAREI group:https://www.facebook.com/groups/WAREI