This is sometimes called the "Enemy Method," and you can search for more details.3.

From a real estate/landlord perspective what does this do besides take money out of my pocket?

I am going with my gut feeling on this one and walking away from the deal.

I'm not familiar with TX law.

FROM THIS POINT - what usually happens? 

If you're financing with 25% down, you may need to search the pits of your investor soul to determine if this is solid. 

This would be either through hard money, partnerships, or some other creative finance.

I believe my price is fair with the comps in the area.

If it's formed right, typically all that's required is a certificate of trust and a few more documents to show the chain of ownership and grantee/grantor.Will this be a rental?

Quote from @Bruce Schussler: A lot of Podcasts and Youtuber's say to cash-out refinance to keep rents balanced with payment; (PITI) then use those funds strategically to re-invest either in more real estate or just put into a high interest bearing account or money market account...Here's some of my thoughts and comparisons;Cash-out refinance with new loan so rents balance with payment:- The cash-out refinance is 100% tax free- The funds can be put into a money-market account off-setting a portion of the interest charge of loan- The loan balance gets eventually destroyed by inflation- The liquid cash eventually gets destroyed by inflation - The interest on the new loan can be deducted from the rent income- The refinance costs are 3-4% of the total- There is less equity in the property and LLC that can be attached in case of a lawsuit- The break-even on cash-out refinance with current interest costs on the new loan is around 12 years Vs.Paid-off property with positive cash flow:- The positive rent income is 100% taxable minus only depreciation and property tax- There is more equity in the property and LLC that can be attached with a lawsuit- The break even is not until after 12 years at today's interest rates- There is a rate risk in today's inflationary environment where interest rates on bonds keep rising*It appears to me that the cash-out refi is in the best interest for a property investor; (Dave Ramsey would strongly disagree!)