One of the biggest advantages of an LLC over a corporation is that you can take shares of most corporations from a person who owes you money, but they can only get a charging order from an LLC, they cannot take the LLC ownership away from you if your operating agreement is done correctly.   

Regarding townhouses, there are a few downsides.  

This property has been well maintained and had a new roof put on four years ago.The biggest repairs I see are possible electrical update in one building and some Decks that need replacing on the outside.I see value ad because of the low rents and could possibly add covered parking or storage to increase the NOI.

Your BIGGEST hurdle might be in disciplining yourself to ONLY considering bargains!

What are the Upside, risk and downside?

The biggest problem I have had with most wholesalers in Texas, is they make up fictitious inflated ARV's and Estimated Repairs trying to make their deals work. 

Hi @Gayle Eisner - We would need more details about the property to make any kind of assessment... the biggest one being, how much money does it bring in (or how much could it bring in)? 

Leverage is the biggest driver of profit in private equity funds, hedge funds, REITS, Investment Banking and almost all occupations of the super rich.  

The downside is that it takes about a week for the money to land in my checking account.

One of my biggest concerns is the first year and the amount of money I will have to put out until I can rent out the second unit, but once I can do that, Ill have positive cash flow.