You can't exchange into other foreign countries from a property you own in the US.

So, if you create an LLC in another state, you will likely need to register it as a foreign LLC in California.

While opinions may vary, I rely on data to help drive real estate decisions and planning.Key ConsiderationsEducational Attainment: 77008 boasts higher numbers of residents with bachelor's (12,241) and master's degrees (5,739) compared to 77063.Demographics: 77063 has a higher percentage of foreign-born residents (41.02%) which typically indicates a strong rental market and with 76.86% renter-occupied versus 32.60% in 77008.Economic Factors: Median income in 77008 is $140,609 with a low unemployment rate of 3.37%, whereas 77063 shows lower median income ($51,899), higher unemployment (9.99%), and more families below the poverty level (16.51%), which may indicate economic diversity but also potential rental payment risks​​.Age Distribution: 77008 has more middle-aged residents (35-54) [8970 compared to 6,115] and a slightly higher proportion of young adults (25-34) compared to 77063 but both are popular with younger adults suggesting strong rental markets equally exist.Housing Market: 77008 features a higher percentage of family households (52.39%) and married-couple families (44.77%), suggesting stability and potential for property appreciation.Digital Advertising Demand: Houston Heights apartments (77008): 50,000 average monthly searches.

To intentionally reduce the leverage more than required is a foreign concept to me.Best wishesDan, financially you are, of course, correct.  

@Yuval ManorWe have partners who are foreign investors.

Thanks @Remington Lyman.Salvatore - as a foreign national there are some constraints for sure.Happy to walk through some options to see if we can assist.

In my case I have a house in Minn owned as a foreign entity in an Ariz LLC .

Then of course there's the IRS this is a exert directly from the site: Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts.

So, if you create an LLC in another state, you will likely need to register it as a foreign LLC in California.

So, if you create an LLC in another state, you will likely need to register it as a foreign LLC in California.