Newbie Questions on Out of State Rental Properties

[Mitchell Rubinstein]

Might be asking obvious questions, but I thought I'd poll the BP community to get some thoughts. I am a new RE investor in California looking to invest in out-of-state rental properties. So here are my two questions (that I have now):

1. My bank is offering me a substantial HELOC on my current property. I'm thinking that is a much better option than trying to finance individual properties with mortgages (I am currently being offered prime+.09%). Seems like the way to go but would love other thoughts.

2. If/when I need to set up an LLC, is that something you do in the state the property exists? Or do I set that up in California?

Thanks in advance.

Mitchell