Your attorney or CPA should be able to create tax efficient structure for you.To avoid this, keep management and decision-making localized to Alabama, and consult a CPA or attorney to ensure compliance with both states' regulations.This post does not create a CPA-Client relationship.

This setup ensures that I stay in compliance with California’s FTB requirements.

In other words Reg D provides significant protection for sponsors IF they are in compliance with its provisions and requirements and did not commit fraud.  

A bit about me: I’m a payroll manager for a restaurant group, where I handle everything from creating policies and SOPs to processing payroll and ensuring compliance with state and federal laws.

Property managers typically belong to state or national organizations that continuously update their contracts and processes to maintain compliance.

Every state has their own real estate laws of course, so legal compliance will also be challenging.

In many cases it is fully legal so long as it is your primary home and you occupy one of the units but definitely make sure you're in compliance before you move forward.

•My California LLC serves as a holding company for my out-of-state LLCs that own the individual properties.This structure keeps things organized while ensuring compliance with both states’ regulations.As for your bonus question, it depends on how the property was purchased.

Permitting for additional bedrooms and garage conversions requires compliance with zoning and building codes.

Lenders have liability in baiting borrowers, with disclosures, rejecting loans, in giving loans, or collection and servicing requirements, liability concerns are huge compared to real estate, violations carry ten years in prison and/or $100,000.00 fines, you better know what you are doing, and there are many brokers out there running small shops that have little if any compliance awareness.