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Congratulations.
Where in the country are you? What types of properties are you doing?, all residential?
I do seperate LLC's for each deal. You've seen how easy it is to form one and it helps to keep everything straight.
It does seem easy, and it is one at a time, but it can be pretty overwhelming when you are trying to do a bunch of deals. You will have to have some staff to help you. (You can get real creative here too).
As was mentioned earlier, having your equity tied up is one of the caveats. Taxes are another huge factor. Do you understand the 'dealer' concept? Once you buy properties to flip, the profits are not capital gains but ordinary income (36% vs 15%). You will also not be able to use 1031 exchanges to defer your profits indefinitely. Once you are classified as a dealer by the IRS, it is difficult to convince them otherwise. Basically, you have to stop doing deals.
Now is about the time that you get yourself a really good real estate attorney. He will save you more than he costs. If he doesn't, get a better one. Get a good accountant.
Glad to see you realize this is not a get-rich-quick proposition. I try to do 2 - 3 deals a year. Hold for a year or two and then make a decision - keep or sell.
Good Luck.
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