You'll have to deal with the FIRPTA tax withholding, but that would only come into play when you sell the property. 

My parents are planning on selling their investment home (SFR) to buy another home in Hawaii (i.e. 1031).

@David Rutledge I don't doubt it, but it's a town of about 20,000 people, and aside from this thing a number of miles away called the Pro Football Hall of Fame, there really isn't anything that spectacular to draw tourism in the area... it must all be corporate and maybe kids returning to visit their elderly parents? 

That profit margin is so small and could easily be wiped out with holding costs. 

Siblings had been taken by the state, parents collecting their welfare checks.

It seems like everyone focuses on choosing certain states based on rental laws and fees and fails to mention the the primary LLC should be in the state where the property is- in which case the the other state options are not helpful.The wyoming legal office did offer to set up a parent company under which my other LLCs be owned-- which I understand that concept.Thanks again!

Hello, My parents have a primary residence purchased for $45k.

My parents are starting to rent out part of their home instead of just letting my kids live there.

My parents are looking to do a 1031 but they can’t qualify for a loan (the older property would only cover 60% of the new property) by themselves anymore so I’d like to do the loan under my name. 

They are actually neighbors to my parents rental so we have some relation to them.