So now I am learning about development out east in your neck of the woods and well we have to survey for civil war battlefields..

It is so much better as we make a nice chunk of money $600-800 and don't have to argue with tenants over little repairs from security deposit/potential litigation.

I have a buddy that's very successful in D Class areas.He drives around all day putting out fires, getting in literal fist fights from time to time, throwing people out of their apartments or changing locks when they leave, constantly breaking the law because they are "civil matters" and he knows the tenants won't come after him, and shaking folks down for late rent.I'm sure folks in A Class areas are doing the same, right?

What type of real estate are you purchasing in CA and most importantly  can you articulate the dispute you believe will rise to the level (with appropriate standing) to be litigated and benefit from being litigated in DE?

I suspect when this goes to litigation and these usually do.. that is going to be a course of action taken by plantiffs attornies.. who violated the laws on compensation..

We may not hear about such cases anecdotally, but I got the impression that litigation does happen.

Both are on autopay, have insurance, keep their places clean, and are civil to each other.The upstairs tenant is a school teacher in her late 40's. 

But, in the event you really are persuaded that it is important to separate each asset, ensure that whoever is managing the books/monies on the LLCs are doing it 100% correctly as even a small mistake can allow would-be litigants to pierce the corporate veil and render all of it in vein anyway. 

I also check the court records (civil, criminal & traffic) myself, just in case something was missed.  

I go through all my parts obtaining private funding, getting contractors set up (meeting dozens of them to find the right ones), and I’m about to get my civil engineers plans for the addition as well to propose to the town the day after closing.