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 is a valid example of an industry that was eventually exposed as being vulnerable to fraud, and once it was exposed, people were like..."

Are they doing everything possible to expose properties to the broadest possible market?

2) Legal - I know licensed agents have a fiduciary responsibility (which is why I want to be transparent with the options and provide accurate numbers) but I want to make sure I don't expose myself to any legal issues down the road.

Because the property is paid for, it is a fairly large amount that would be exposed even in the llc. 

I feel overly exposed to real estate in SFO.”People love to dump on San Francisco, and it clearly has its problems.

Some of their products have a toxic smell so you have to be wary of that, especially if you have animals around neither you nor them can be exposed to it.Meaning you might want to test paint a room and see if that solves your problem.Good Luck!

However, this might expose your operational LLC to risks associated with your rental properties, which could be mitigated by keeping them separate.Cons: Separating Y from X could provide an extra layer of protection.

About 50' x a foot or so wide to expose plumbing for the inspector.

That's about $100 just to grill. add to that, no one grills enough to use the whole propane tank.