Regardless of which state you choose, be sure to maximize your liability on your renters policy and get an umbrella - this will protect you more than any LLC will. 

Hi BP, would like to hear feedback from all you folks in or near the Kansas City area,Currently I'm looking for a software to help me generate leads, but there's so many of them to choose from, I don't know which is best suited for my area.

The choice between the two would be up to your investing goals and what you are wanting to do with the property.  

Our ultimate goal is to get into real estate development along with buying rental properties.

I'll do that when I meet my investments are producing my final goal of $X.

Start by researching the market to choose the right city and property type while understanding the local economy.

What are some of your goals?

If you're not set on a specific market, it's worth waiting until you choose, as forming the LLC in your target state can simplify compliance, property registration, and taxes. 

.- My Goal: to have $10k/months of income to replace my day job.

I’d be happy to share insights and tips to help you get started and work toward achieving your goals.