Agree with much of what's been said, but especially the notion of choosing your investment class first AND your goals...are you looking for income?

Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts.

@Shivam Patel, Contributions into and distributions from an LLC are not normally taxable events. 

Unlike a BRRRR strategy, an ADU offers an increase in living space and potential income, contributing long-term value and stability, especially as the real estate market evolves.4.

Down payment can also come from a DPA program or a gift and you can ask for a "Seller contribution/Concession" to cover closing costs.401K in most cases can be used without penalty if used for a primary home if not take it out regardless and pay the tax if it allows you to buy a good deal. 

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.

This seller credit for buyer side commission isn't unusual as it is exactly like seller contributions to buyer closing costs that have been done for years.Remember, you as a buyer can insist on a non-exclusive buyer representation or very short representation time period.

Would love to learn from you all experts here and contribute in the discussion as well.

In addition, if you are self-employed with no full-time employees you may wish to consider opening a Solo 401k instead of a self-directed IRA as it has several advantages over an IRA LLCsuch as much higher contribution limits, direct checkbook control (i.e. no need to have the account at a speciality trust company), ability to take a 401k loan, exclusion from unrelated debt finance income tax with respect to investment in real estate acquired with non-recourse financing, etc.

Note:  LLC has bought/sold $12 million over the last year with and made a profit of 650,000 (without any of the partners RE commission contributed to the profits)Going forward Partner #1 wants the RE commission to be included in the profits - less a flat fee to her.