Its a triplex in Yuba City, CA Thanks.

In flipping, as they say, cash is king.

I would like the company to be in Southern California.

I'm in CA and I spend $72 every 2 months on preventative pest control.

That'd make it easier as far as deciding which state to open the LLC in.If you open the LLC for say Nevada, but do business (own properties) in California, you'll have to pay foreign entity fees/tax...and that's pointless.Next, you need a very good operating agreement for your LLC.

I notice that investors from CA will buy a huge apartment complex in TX, AR, or TN, but you don't see an investor from those states buying big in more expensive markets. 

Most people that put their house on the market (mainly in CA) are looking for as much appreciation as possible so rarely you will find home significantly below market.  

Are these sellers naive or is cash really king?

Like "what is your plan when there's an earthquake and California falls off the face of the earth?"

@Brandon TurnerIn California the Title company handles research and makes sure title is clear.Closing happens through escrow.