First, there are about 6 states that I refuse to invest in because of their tax laws and what I consider to be an unfriendly business environment.

There could be local considerations that are tax and inheritance related.Thanks for the reply Ken.

From experience, I’d recommend getting pre-approved, improving your debt-to-income ratio if needed, and researching local assistance programs.

Overall, the tax benefits and appreciation alone keep me interested in staying with it more than the cash flow itself. 

Check with your municipality about how property taxes will change when you buy the place.

If you are taking out a conventional mortgage of any kind, you can't buy in the LLC as it does not have two years of tax returns.You are also asking if an entire state is good to buy multifamily, which means you are too soon in the process to even talk about buying.

@Anita Z.I recommend finding an accountant who specializes in real estate taxation, tax planning and financial planning.

As someone mentioned, the only thing passive about real estate investing is the tax treatment. 

Are you able to use it easily, only with a HELOC.If you lose your tax deductions, then Uncle Sam is happy to take more of your money each year.Good Investing...

Quote from @Devin James: Im currently learning this lesson with New Builds that have taken twice as long to complete than anticipated.....Finishing a Real Estate project ASAP is critical because...1) Holding Costs add up quickly- Loan Interest- Property Taxes- Insurance2) Investor Capital- Our financial projections are dependent on how fast we can turn our investors capital.