This gives much better diversification protection across geographies, asset types, strategies, investment subclasses etc. versus putting all the eggs into one basket.The downside is that it's not for everyone, and a person has to be comfortable with turning over control to someone else.

The purpose of an LLC is for anonymity or legal protection.

Based on what I have heard/read thus far, it seems like I don't need a formal legal structure such as LLC for running this is as an active business (but I may set up an LLC for asset protection, which is allowed by my mortgage lender).

The LLC only provides basic legal protection.

Brokers can look at tax records but past that they are not going to do title examinations and date downs again thats what title companies are in business for to protect buyers and protect your title..

Granbury is also very protective of its bed and breakfasts.  

Title insurance protects you from adverse claims, whatever that means.

@James McGovern if I can assume by "undocumented immigrant" you're talking about someone who entered the country illegally, he/she would not be considered part of a protected class under federal / state Fair Housing laws.

I own properties in two locations over 2000 miles from home and thank my managers every time I talk to them for protecting my interests and putting up with day to day issues that I don't have too.

At worst you'll have to schedule monthly transfers to cover your recurring income and expenses as they won't offer sweep or overdraft protection.