So I was $700/mo to the good and only getting better.

Many experienced investors advise that it’s better to spend time (for the rookie) trying to do deals than worrying about asset protection.  

you can consider a sale pitch.. but just remember one usually has better advertising through the MLS, also better access/availability unless you have time to field all the phone calls and arrange showings.  

Market is getting better and feeling better about everything m.

Any insights from anyone as to which one is better, and why?

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. 

What would help is if you had a partner or family member with better credit who would be willing to give a personal guarantee alongside you.

You’d be better off asking for a signature loan. 

I would be happy to speak with you and share my thoughts on why its better if you would like. 

Paying down your mortgage and owning an asset that will appreciate over the long term.If you are paying close to what you pay in rent to cover PITI and expenses then owning a house is a much better financial decision than renting.