As a person who has lived in NC & SC and Phoenix, I would highly suggest AZ.

You also have the option to close these DSCR loans in your LLC as opposed to your personal name.Our team finances just shy of 100 DSCR loans on a monthly basis.

I personally try to automate as much as possible and rely on great/trusted handymen, cleaners, etc. on the ground that can take care of anything that comes up and let me know about the state of the property.

With a loan, a person takes on a Debt Obligation. 

While an LLC can offer liability protection and tax benefits, it’s not essential for a single property—personal liability insurance and an umbrella policy may suffice for now.

have you seen it yourself in person? 

.- You both report your share on your personal tax returns and pay taxes based on your own tax rates.3.

Intangible assets like goodwill or tangible personal property (e.g., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

In reality, he’s managing your investment, and part of that responsibility includes transparency and accountability.At the very least, you should be getting invoices for any repair over a certain amount (say, $250 or whatever threshold you’re comfortable with).

I am still personally buying rentals but I am not expecting much in the way of cash flow at the moment.