Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Since you can't escape CA LLC registration, if the property is based here, and if you are a resident here, may make sense just to form a CA LLC and simplify your life and your costs.Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

They key is to realize their pro forma numbers is perfect case scenario.

Can I put the kentucky property in my illinois llc or form a new one in Kentucky.

This means it is a 4.5% PRO FORMA cap rate, which could turn out to be a 3% cap rate or less if they don't get their projected rents, or expenses turn out to be higher than they thought. 

No payments to stop if high quality tenant and strong location.All these rosy pro-forma's folks you all are in investing in where all the debt and rental growth and all that are called VARIABLES to an investment.

If you have no idea how to set up a pro forma that will answer #1, and #2 your issue may or may not be the numbers on the condo, it may be your analyzing technique.  

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Unfortunately most investors believe their excel spreadsheet will provide all the answers but I recommend combining your pro-forma with a greater emphasis on physical interaction with the properties and more importantly neighborhoods where you decide to invest.

I'll write down everything you said and use it to form a good goal/plan.