I don't think you need to open a direct California LLC. 

What really matters is how long you think you will have this loan. 

Most professionals will recommend a separate LLC for every $1 million in assets, but I don't think that's necessary.

I used to do essentially free consulting with new investors on it but gave it up for some of the same reasons - everyone thinks you can just sit at home and buy good properties across the country that are in great shape. 

Lending to Entities Only: (Not required but think carefully.)

A couple other neighborhoods I like besides the two you mentioned are Washington Park, Hyde Park, Woodlawn, and South Shore.I think that area will continue to be gentrified because you have the lakefront as well as CTA trains.Is there any reason you are targeting Chicago instead ofdoubling down in Kansas City?

This guy is great and he thinks outside of the box to get the deal done.

Similarly, if you put several Class D tenants in a Class A 4-plex, what do you think will happen to the property?

unfortunately, I think you are right - it's a difficult market for investors, period. 

I don't think he would allow someone that had to put the fee on a credit card.