They can provide guidance tailored to your specific situation and help you navigate any state-specific requirements.If you're considering investments in other states, like Arizona or Texas, it's worth noting that some states, such as Texas, don't have a state income tax, which can simplify the process. 

With that in mind, which approach do you think works best:1.Use property management software (PMS) as an intermediary to automate payments and fee splits while reducing legal risk and simplifying operations?

This structure simplifies management, centralizes ownership, and provides an extra layer of liability protection.Tax-wise, the state where each property is located will still require income tax reporting and LLC fees.

Our business plan actually includes rehabbing distressed properties and conducting off-market transactions with owners currently occupying distressed properties using equity to reduce the out of pocket costs for the seller/buyer and to simplify the process.

That’s the very simplified version but raising capital is always your biggest limiting factor so the more investors you can connect with the better. 

I have decided to simplify my structure.

That is a simplified version of how it would work but a scenario where collection is much more likely.  

Quote from @Bonnie Griffin Kaake: Here is a simplified calculation that some may be interested in: ADU cost $200K, annual rental $21,600 ($1,800 per month) = almost 11% per year.

Affordable Entry Prices: Both Oklahoma City (OKC) and Tulsa offer properties well below your $200K-$300K range, making it easier to meet your cash flow goals.Landlord-Friendly Laws: Oklahoma is one of the most landlord-friendly states, which simplifies managing your investment and dealing with tenants.Strong Rental Demand: Both OKC and Tulsa have stable rental demand, especially in areas near colleges, hospitals, and growing suburbs.Job & Population Growth: OKC, in particular, has been experiencing job growth in energy, aerospace, and tech industries, contributing to a growing rental market.

You could even consider a condo with an established HOA that’s STR-friendly—it can simplify maintenance and management.A Few Other Things to Note: Documentation is everything.