I think that is more of a question for your attorney and the answer will likely vary by state.

These two loan types are among the few exceptions that permit closing directly in the name of an LLC.Most of my clients initially take title in their own name, then later transfer the property into an LLC or land trust for asset protection or tax benefits.

(I REALLY can’t stand state income taxes.  

Contrary to what I read online my lender never questioned the condition of the property.

As others said out of state can be more challenging based on location but local or out of state both can be done. 

OP you might research but I believe the Federal OZ program has sunsetted.  

Especially for the Southeast / Sunbelt region of the US.  

The reason is that one wants to be able to properly avail themselves to the laws and protection of the corresponding state where the property lies.

I want to diversify and I feel like the best way to accomplish that is through real estate.

I agree we should take them out of the feed.