But you can shape your portfolio to become more passive or cash flow efficient or less exposed to local laws without having to pay the high costs of exit.  1031 exchanges allow you to move from any type of real estate anywhere in the country to any other type anywhere in the country.  

I have maybe 3 or 4 states in mind, I am trying to see where I could move that would be the most cost efficient for me.

The most efficient strategy ALWAYS depends on your specific situation.

You must know what a good one looks like, screen until you find a good one, then supervise them to ensure they adhere to the agreement.I manage up to 400 rentals and have dealt with thousands of renters.

Let's break down the pros and cons of each approach:Forming an LLC in the State Where the Property is Located:Pros:Compliance with Local Laws: Establishing an LLC in the state where the property is situated ensures compliance with local regulations and laws specific to that jurisdiction.Legal Clarity: It provides clear legal jurisdiction and may simplify any legal proceedings related to the property in that state.Perception: Operating with a local LLC may give tenants and local authorities confidence in your commitment to the community.Cons:Additional Costs: Setting up and maintaining an LLC in another state means incurring additional registration fees, taxes, and possibly hiring local legal counsel.Administrative Burden: Managing multiple LLCs across different states adds complexity to your administrative workload, including extra paperwork and compliance requirements.Tax Implications: You may face tax obligations in both the state where the property is located and your home state, potentially leading to double taxation or complexities in tax filings.Managing Through Home State LLC:Pros:Simplified Management: Handling all properties under a single LLC streamlines administrative tasks, reducing paperwork and simplifying tax filings.Cost Savings: Avoiding the need to establish multiple LLCs in different states saves on registration fees, legal expenses, and ongoing maintenance costs.Consistency: Uniformity in management practices and legal structures may contribute to efficiency and ease of operation across your real estate portfolio.Cons:Legal Exposure: Operating out-of-state properties under a home state LLC may expose your personal assets to the laws and liabilities of the other state, potentially diminishing the liability protection the LLC offers.Compliance Challenges: You'll need to ensure your home state LLC meets the legal requirements for conducting business in other states, which could involve additional filings and fees.Perception and Credibility: Some tenants or local stakeholders may prefer dealing with a landlord who has a local presence, which could impact your reputation or relationships in the community.Ultimately, the decision depends on your specific circumstances, risk tolerance, and long-term goals.

This ensures income is properly reported for both years.

It’s advisable to consult with a tax professional or real estate attorney to ensure the arrangement meets both your needs and complies with tax laws.In a seller financing deal, once you start making payments, any equity you build in the property does indeed go to you, not the seller.

I will be the contractor working with the architect firm to ensure this project goes smoothly.  

It also likely puts the onus on tenant to ensure payment arrives.Assuming your lease is solid, "let her go" is not the correct process.  

The costs of a QI are also often relatively minimal in comparison to the interest and penalties you would pay if it is blown up.You are also parking significant sums of money with the QI - that alone is worth using a reputable QI to ensure your funds don't disappear.