@Justin StetsonA very popular progression is for people to start with SFH investing and then eventually switch to MFH (from smaller to larger ones).

Rather, such plans are simply a mean to diversify with broader investment choices. 

A “renter’s choice” city ordinance — requiring landlords to accept renters’ insurance and other alternatives to a cash security deposit — passed last week by Cincinnati City Council was featured in a weekend article by the Wall Street Journal’s Will Parker (paywall).

Ideally, I give them three choices, all of which make me happy, and they pick which one.Example:Offer 1 - All cash.  

Vetting who you work with and making a smart choice is imperative.

Here is how my management services agreement is structured: 1) Define terms ("manager", "properties", "portfolio", etc)2) Term length3) Authority of Manager- specifically spells out what the manager can do on behalf of owner (and exclusivity)4) Responsibilities of Manager5) Responsibilities of Owner6) Property Maintenance (spending limits and expectations)7) Compensation (spells out ALL fees that I would ever charge an owner)8) Liability and Indemnification (protective of Manager which is industry standard at least in my region)9) Insurance requirements for owner10) Leasing (how manager will acquire tenants, non-discrimination)11) Termination (notice requirements, etc)12) Legal stuff (choice of law, merger clause, notice, etc)Hope this is helpful I can expand on these if you're interested more

Essentially they are a poor choice. and you still deal with the only ground stuff which is the real hard part of itOriginally posted by @Michael Baum:Evolve does that for 10%.

The second choice is to refi the first property to 25% equity and consider it as an investment property.

That market is becoming increasingly popular and many investors are looking there.

You should probably consult a lawyer and cpa to help you decide.As a general rule, for LLC owning directly real estate, it is often recommended to have the LLC recognized in the state where the property is located as it is a requirement if your LLC need to be represented in court (think eviction or code enforcement problems).There are ways around like using a local operating entity or even in some cases land trust.The choice of the LLC state may also be based on some cost factors.Last but not least, while all LLCs have the same inside liability protection, states differs widely on outside protection.