Question regarding LLC's formation for holding REI property

[Praneeth Pantham]

First of all I would like to start this post with a thanks to BP & its community for its amazing information/education on REI.

We are six friends [from different states - NY(Albany), DE(Wilmington), VA(NoVA) & GA(Atlanta)] who would like to get into real estate investing by buying a property under a LLC. Right now we would like buy a property that fits our needs in one of the aforementioned four states/cities for ease of access. We were wondering where the LLC should be formed to own this rental property.

(i) Should it be in DE because of its reputation for a very LLC/Business friendly atmosphere even if the property is not in DE.

(ii) Or should it be in the state where the prospective rental property is located.