Remember, a good agreement makes a good deal better, but a bad agreement makes a good deal bad.Also, as @Dan Heuschele alluded to, if either of you performs any activities whatsoever while residents of California, the state of California's position is that you will have to register your LLC with the California Secretary of State (even if formed in Texas or some other jurisdiction), file the annual Form 568, and pay the annual $800 tax.Also, by forming an LLC in Texas, you may be subject to the Texas Franchise Tax.So really the only person who can answer the question of whether you need an LLC or some other entity/arrangement is a qualified attorney who thoroughly understands each partner's situation with respect to themselves and each other.If you need a reference to a good one, I have one. 

Good Morning, I had a question regarding a situation.

To make the best choice, carefully calculate the financial implications, align with your long-term goals, research the market for larger buildings, and seek advice from a tax professional to navigate potential tax impacts.

To precisely assess each property's cash flow potential, a comprehensive financial analysis and due diligence process are necessary.In order to invest in Dallas, one should carry out extensive market research, establish connections with local investors, property managers, and real estate specialists; moreover, one should investigate financing alternatives, investigate possible investment properties, and give careful thought to property management.

Seek professional advice from a real estate agent or financial advisor to ensure informed decisions.

Quote from @Rigel Cagbabanua: L@Paul De Luca I’m thinking of saving up to down 20% probably and I would also like to have it rented by tenants in the future I don't know your financial situation and it depends on the purchase price, but for a lot of people it can take years to save up for 20% down.

I'd like to learn more about the situation and see if I can point you in the right direction.

Additionally, consider consulting with a financial advisor or tax professional to assess the potential risks and benefits of borrowing from a retirement account for this purpose. 

It's been awhile since I posted in the forums, but I'm having a really weird situation with my water heater.This is in San Diego, CA.  

This method not only allows you to enter the real estate market with reduced financial burden but also opens up opportunities for generating passive income.