I'm not an attorney but my understanding is yes, you can definitely do that, and I believe things like that happen every day.While I can see some possibilities for why someone would want to set things up that way, I do have the instinctual thought that it might be over complicating things.Technically the second LLC is another layer of asset protection, and maybe you have a very specific entity structure setup for taxes which would make it beneficial to do it that way (an LLC inside an LLC), but it's worth asking the question of whether these is much difference, or much more protection, than just having you (presumably a Mass. resident) be the member of the RI partnership LLC straight-out rather than having your MA LLC be the member.Also, depending on what else you have going on in your MA LLC it may be a disadvantage to have it be a member of the RI LLC from an asset protection perspective - if someone were to be able to pierce the veil of the RI LLC then everything in your MA LLC would be at risk.If you do go with the MA LLC as a member of the RI LLC, when you go to sell the property you'll have non-resident withholding - but you'd have that if you personally were the member of the RI LLC as well.You'll also need to be careful how you sign anything relating to the RI LLC - you'd have to be careful not to sign as member of the RI LLC but as member of your MA LLC, member of the RI LLC.

@Michael ZackAre they familiar with the real estate laws in Mass?

I am comfortable in the towns/cities that I am researching in Mass, I just wonder if I can do similarly well in Florida, Colorado, Texas, but with half the cost!?

Banks are not stupid and the concept of putting a property into a Trust, while legal, makes it far simpler for the bank to do a sort on their current loan portfolio for all loans with the word "Trust" in them and call them all due en masse or as groups, because the banks know they didn't lend to a Trust, they lent to an individual. 

Like a lot of cities in that region water and sewer is expensive. here at my house in Mass, the last water bill came and 6 months of water and the whole bill was under $60.

Any recommendation/advise from landlord in Mass like where to buy 1) Carpet2) Doors3) Kitchen Cabinet4) TilesThanksSam

You need to get an attorney involved ASAP.Look for someone through the Mass Bar Association who has a track record in defending these kinds of cases. https://www.massbar.org/public/lawyer-referral-ser...My understanding is the same as yours - if a property is not inspected and approved by the local housing administration (the local authority that administers Section 8), then Section 8 renters are not able to rent there.It's just a guess, but if your PM said something like "we don't rent to section 8", that could be the basis of the complaint. 

(I love the breed, love the dogs, father used to raise them to hunt hogs, but something clicks in their brains (not all of them), and the force of their jaws locking down and pure muscle jerking back and forth is scary!)  

The most recent unreasonable request was to replace a sidewalk that had passed inspection just a few years prior - newly hired inspector has to show he can flex his muscle I guess.

That means there are mass layoffs every few months.So, i was reading a few months ago and started getting excited about RE investing and the possibilities it could bring.