LLC formation for out of state investors

[Kevin Coyle]

Hey all!

My partner and I are new to RE investing and we're preparing to purchase our first residential multi-family rental property. We will be investing out of state (live in VA and invest in FL) using the BRRRR strategy. From the research we've done, we're leaning towards creating a WY LLC as a holding company and a disregarded FL LLC to acquire our properties and flow money through. We do intend to scale our business considerably over the next few years. Our goal is to protect ourselves and any assets we acquire while also reducing our tax bill.

What business entity structure do you use when investing out of state?  Would love to get feedback on our proposed strategy as well as other suggestions!