It is supposd to catch money laundering, but it exempts any company with more than 20 employees and grossing more than $5 Million. 

Different rules apply to brokers and property management companies, but the state is much more Laissez-faire with unlicensed homeowner landlords.

Your dad may be the Executor of you uncle's probate estate, but he'd be the Trustee of the Family Trust.A number of different things may come into play. 

They currently have another assisted home in a different part of town that they run for 5 years and are looking to add my rental home as a second.

It offers immediate cash flow and diversification across different real estate classes and markets, freeing you from the headaches of active management.

I recently considered selling one of my first rentals to purchase something different.

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.

I also own a small renovation company that has operated in my are for nearly a decade. so my rehab cost on a property would be much more cost effective than hiring outside contractors.

@Gp G.Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

As someone that grew up in NH, knows every corner of the state, has managed both LTRs and STRs across New England, and spent as much time as I can learning from others in different regions across the BP STR forums for years now I would honestly not recommend anyone invest in New England versus areas with far longer rental seasons.