There are some restrictions so I would encourage you to look into it to see if eligibility applies.

Several things to consider: 1) One of the main purposes of segmenting your assets into separate LLC's is so that your personal net worth or equity in other business ventures or properties isn't exposed, so unless you have a high net worth or a lot of equity in a property, it might not be worth bothering going the separate LLC route, especially when it restricts your financing of the property.  2) Most any commercial financing you get from a local bank for a small property is going to have recourse anyhow and require that you sign a personal guarantee, so you're still personally on the hook to the bank even in the case of a commercial loan.  3) If you're a newer investor and buying a deal that's tight on cash flow, or if you don't have a ton of cash sitting in the bank already, your greatest risk factor as an investor is your investment failing economically due to poor financing terms or not operating the investment properly, not because you get sued. 

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Also, consider the potential for appreciation and rental restrictions, as some HOAs have rules that might limit leasing later on.Given your $20k starting point, a condo could work well as your first step into real estate, especially if you focus on one with a manageable HOA fee and potential for appreciation.

I ask because you all know the margins on properties to rehab has tightened significantly to around 73% where I am, from 50% purchase to ARV some years back unless one can get directly to the distressed properties, but everyone and their mother is today into the wholesale business, making it more difficult for the rehabber to get those same properties.  

Sure there is a very small chance that something will go wrong, but with the tightening rental laws spending a little on a proper lease is smart.

Staying local would make capital the limiting factor where my restrictions out of state would be additional research.

As interest rates increase and money supply tightens, we will see what happens with Bitcoin. 

That $250 water leak started as a $75 service call to tighten a connection and add new plumbers tape.

Normally, unless there are specific building code restrictions, the amount of units allowed on a lot is determined by the Floor Area Ratio.