This might be a question for our insurance broker/future attorney, but wouldn't the LLC be formed in Indiana since the rental property is located there (versus Illinois where we will be living)?

I'm primarily Texas and Arizona with interest in Huntsville with it as a central hub location for that part of the country.

It's possible to get some motivated sellers through a website with assistance of SEO , website optimization and PPC, but it's not a basket I would put all my eggs into if I was trying to locate the sellers. 

There are a lot of good things about Wyoming LLCs, but the favorable Wyoming laws don't matter as much because the state you are in will apply the laws of the state the property is located in. 

*the only reason I am not pursuing is because the home is located directly across from my current investment property and I'm looking to diversify my investment locations. 

I agree with Collin.The Smokies do have a lot of competition, so you need to have a view, decent location, good to great amenities etc to stand out.We have a 6-bedroom cabin there, but I imagine a 3 to 4 bedroom would be in the sweet spot of not too big or not too small.

Compare other rentals with a similar size, location and bedroom count to get an estimate of what the rent would be while you're living there.

I would imagine most attorneys located around the MA, NH border area plan to make more than $200,000 per year.

The terms and costs will depend on the property, your personal situation, the location, etc.

I See your located close to where I am in Florida.