Most of the time, my clients opt to create the LLC in the state they are conducting business, but there are sometimes reasons to register in another state.From a tax perspective, you can have the parent LLC as a partnership that wholly owns the child LLCs that actually own the properties.

i'm like a new born to real estate investing.

Type of financing sought: Refinance via conventional loan or LOC.Current or prior ownership of real estate: Currently own my primary home and a commercial property.Occupancy: family member and rental once moved out.Value of property at present and/or your offer price: $310,000After repair value: $310,000Anticipated or actual appraisal issues: no.Current rents per month: $0Fair market rents per month: $1500Down payment or equity: $90k to acquire (cash), then seek to either refi into a conventional loan for $100k or just do a LOC.Source of down payment funds, if applicable: own funds.Income Source: Salaried/hourly W2 and rental income.Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $1200FICO: Excellent/good (average around 800)Credit issues: No.

No piece of paper will protect your friend if a child gets hurt. 

I got my problem with a child sleep over , they like to travel in luggage, when I found out there was 50+ found and killed   Between 2 mattresses I learned about them so I wouldn't be so creeped all the time "fear of the unknown "Extermination in my area usually run @ $1 / sq ft, so the bigger the house the more it costs, watch some videos and you'll see why so expensive but I guess that when things get really bad, took me at least 1 hour to do a room and that's with help, well hope this helps and good luck, let us know how things turn out 

The way to really look at this is the money going to you is a gift from your mother in law which after expenses should avoid any gift tax (currently 13k/year and going to 14k next year) when you include you and your wife and even your child. 

Plus, I feel a huge duty, responsibility and obligation to create multigenerational wealth for my child and my entire family.  

And had newborn in the unit.

I have a couple applicants that are married with a newborn baby.

In our case adult female children had a tendency to pop out offspring as if they were a PEZ dispenser, often producing a child with every man they casually dated, then dropping off the children at "grandma and grandpa" to raise.