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.

AND, if the LTRs are out of state, you will need to register your LLC as a foreign entity in the state you are operating in if you are being paid from that state.

You can usually register a foreign LLC in a different state for a fee. 

Rates as of this posting date vary but are in the 6s and 7s (or possibly 8s if not a top tier credit score or a foreign national loan as considered a higher risk and will be reflected in the rate).