But this isn't it just outright math, this is to a degree speculation risk tolerance, and behavior.

If you have extra time on the side and have higher risk tolerance, flip/BRRRR would be a faster fay to scale.

The answer is, and I'm gonna sound like an attorney, It depends.Depends upon your goals, your mindset, your risk tolerance.  

I do not tolerate anyone treating me or my staff that way, and I won't put up with chronic complainers.

We all have different capabilities, lifestyles, financial situations, risk tolerances and someone in my exact same situation might make different decisions. 

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.

Hi Elaine, question are what is your investment goals and risk tolerance?

I know that much of it is based on personal risk tolerance but any advice would be greatly appreciated. 

The issue is that these loans undergo significant underwriting and can take up to 60 days to close which most sellers may not tolerate. 

To begin with and develop confidence, start small by beginning with a single rental property or a modest multi-unit property.To choose the ideal property kinds for your investment goals and risk tolerance, do in-depth market research to uncover attractive investment markets and examine local market trends.