Home state or property state: Where should I form my LLC?

[Eric Stoltz]

Its been a while since I've been active on here. In the last 3 years we've picked up 7 new properties out of state doing 30 year fixed financing and holding the properties under our own name. While I know I could try and quit claim the properties to an LLC for asset protection I don't want to take a risk on the due-on-sale clause. However we are considering buying property number 8 as a cash deal in order to boost our monthly cash flow. I'm considering forming an LLC for the property. We currently reside in florida but the properties are located in Tennessee. Do I need to form the LLC in Tennessee or Florida? We are also considering just doing an umbrella policy instead depending on the complexity of doing the LLCs. We already have experience forming LLCs so there isn't necessarily a learning curve to the actual formation.

Thanks