But at a certain point, your renter pool becomes smaller and there's a diminishing return on your investment to differentiate your property.

Let's break down the pros and cons of each approach:Forming an LLC in the State Where the Property is Located:Pros:Compliance with Local Laws: Establishing an LLC in the state where the property is situated ensures compliance with local regulations and laws specific to that jurisdiction.Legal Clarity: It provides clear legal jurisdiction and may simplify any legal proceedings related to the property in that state.Perception: Operating with a local LLC may give tenants and local authorities confidence in your commitment to the community.Cons:Additional Costs: Setting up and maintaining an LLC in another state means incurring additional registration fees, taxes, and possibly hiring local legal counsel.Administrative Burden: Managing multiple LLCs across different states adds complexity to your administrative workload, including extra paperwork and compliance requirements.Tax Implications: You may face tax obligations in both the state where the property is located and your home state, potentially leading to double taxation or complexities in tax filings.Managing Through Home State LLC:Pros:Simplified Management: Handling all properties under a single LLC streamlines administrative tasks, reducing paperwork and simplifying tax filings.Cost Savings: Avoiding the need to establish multiple LLCs in different states saves on registration fees, legal expenses, and ongoing maintenance costs.Consistency: Uniformity in management practices and legal structures may contribute to efficiency and ease of operation across your real estate portfolio.Cons:Legal Exposure: Operating out-of-state properties under a home state LLC may expose your personal assets to the laws and liabilities of the other state, potentially diminishing the liability protection the LLC offers.Compliance Challenges: You'll need to ensure your home state LLC meets the legal requirements for conducting business in other states, which could involve additional filings and fees.Perception and Credibility: Some tenants or local stakeholders may prefer dealing with a landlord who has a local presence, which could impact your reputation or relationships in the community.Ultimately, the decision depends on your specific circumstances, risk tolerance, and long-term goals.

As you know ancillary income opportunities in Colorado are diminishing as each new tenant landlord law passes.

So any cash flow I got from house #1 is being diminished by the tax increases. 

Homebuyers struggled to secure financing, while construction companies grappled with stalled projects and diminishing demand.

Not to mention higher property tax+insurance.2. if we chase highest appreciation good quality SF OOS, the initial cost is similar to starting condo price in good appreciation location in CA and Hawaii.When home price is higher than average US home price (400k-ish), The "allure" of investment OOS has significantly diminish.$250/sq ft is rich.

The hope is that with poor MTR returns that various operators convert to LTR and the supply diminishes allowing us to raise our rates while maintaining a high occupancy rate. 

We have HUGE demand with miniscule supply, hence amplitude is at 150% UP, but, one a diminished affordability metric. 

Once you’ve experienced the successful rental of your first house hack, this fear diminishes.

The asset holds value because of increased demand, and diminishing supply over time.