The monthly rent would likely be lower, but the entry costs and potential regulatory hurdles might also be less.Here are my main considerations:Rental Income: Higher in Berkeley ($2k/month) vs. potentially lower in the Midwest.Appreciation: Likely higher in Berkeley.Management: Easier to manage the ADU since it's close to home, but more regulatory headaches.Diversification and Simplicity: Potentially less hassle with a property in the Midwest.Given these factors, what would you recommend?

.- Legal and Regulatory Framework: RERA Approval: Verify that the project is registered with the Real Estate Regulatory Authority (RERA) and has all necessary approvals. 

TR-31 (new mandatory security) requires substantial cap ex to meet regulatory requirements. 

Like other posters have mentioned - it will likely vary by lender - but generally most states will be OK with either Individual or LLC but there are a handful of states that due to various regulatory interpretations will require a LLC (or require a LLC to have prepayment penalties on the loan structure) Borrower = Individual or Entity AL, AK, AR, AZ, CA, CO, CT, DE, DC, HI, ID, IL, IN, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NJ, NM, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, WA, WV, WI, WY Borrower = Entity only GA, FL, IA, MT, RI, VA (1-4 Units) Prepayment Allowed Vested Entities Only IL, NJ

Since the mortgage remains in the original borrower’s name, any missed payments could affect their credit and lead to foreclosure.Legal and Regulatory Compliance:Verify that reselling the property "subject to" complies with state and local laws in Texas.

It is important to check with your state’s regulatory authority to understand the specific requirements.2.

Some judge(s) and regulatory people out  there would jump on that that as evidence of retaliation.   

They stated due to regulatory changes in IL, they can no longer provide those reports for rental applications.Does this mean I no longer can do a background check in IL or is there a work around with possibly another service I can use?

.- Legal and Regulatory Knowledge: Property management companies stay updated on local landlord-tenant laws and regulations, ensuring that all aspects of property management, including tenant screening, are conducted in compliance with legal requirements.In conclusion, tenant screening is a cornerstone of successful property management, contributing to tenant satisfaction, property upkeep, and financial stability for property owners.

It is becoming harder to justify a restrictive 5.5% federal funds rate.The Chevron and Loper DecisionA new Supreme Court Decision may Hopefully Bring Clarity and Efficiency to the Mortgage and Housing Market.A recent Supreme Court ruling may bring impactful regulatory changes to the housing market, and people aren’t talking about it.