Newbie from California looking for REIs out of state

[Andrew Wong]

Hi BiggerPockets!

I'm a programmer working in the Bay Area. Since the real estate in the San Francisco area is ridiculous, and ultimately unaffordable for me, I'm looking to do business outside of the area.

I have a pretty big focus on using various investments as a vehicle to reach financial independence early on, and REI is another way for me to diversify.

I'm looking starting out with a partner who is also in the tech business and pooling some money together 50/50. We are looking for single family homes with a focus on cash-flow. Since we'll be out of state, we'll be working with property management companies. We currently looking at Memphis, seems like a hot spot for cash flow homes, and an area that is within our budget.

Our current questions are about forming a Partnership, or a LLC, and what tax implications there will be.

This is all a new venture for me, so I'm soaking up a lot of information, and would love to know more!