Has zero interest in real estate or filling out any paperwork.

For example one person could manage paperwork and another person could be boots on the ground.

They will have slightly less paperwork and be more eager to win your business.

I'm signing my paperwork today to get it funded. 

Managing 138 doors as a property manager in my 9 to 5, I can say, I have a lot more paperwork and hoops to jump through to get a S8 tenant approved.

They’ll also handle all the paperwork for you.

However, you’ll need to handle all the paperwork, figure out which forms to file, and stay on top of compliance requirements like annual reports.

If it's a layered LLC, most lenders will need to trace a warm body on the operating agreement which will involve a bit more paperwork trail.

At a high level, this is generally the path people take - we see a lot of people have success in this route - start building the portfolio with banks, low down payments, and then **generally** when you hit around 5 or so properties - it starts to make sense to switch over to LLCs, its too hard to qualify/deal with paperwork of banks and switch towards private lenders like DSCR Loans - (LLC friendly, easier) to scale past 5 or so.

Assuming it will be Single Member LLC (you as a member/manager), it will come back on your schedule E anyway, so only thing you loose is $800 in california and bit more of paperwork but that preps you for future.Note - this is a very high level advise and mostly a personal preference.