LLC's are more used by larger investors and people who do not qualify under their personal names and have to ue business purpose loans and they require the property be in an LLC and not an individual.

In my experience, non-primary residential SFH requires 20% & multi-units require 25%.

The licensing process for real estate requires fingerprinting, which should deter bad actors.

A CSLB-issued license is required for all construction-related work that costs $500 or more in combined labor and materials.Thirteen of the 18 suspects were cited for contracting without a license (Business and Professions Code section 7028).

(Not really a surprise that CA makes life a little harder)The California Franchise Tax Board will require that you file a new form every single year (Form 3840) in which you detail what you did with your sale proceeds, where they are invested, and whether you ever recognized income from your sale or any subsequent sale.  

It's easy to obtain, costs very little, and doesn't require extra, on-going effort to maintain. 

We have a tenant in process- my property manager is telling me that he uses Turbo Tax and the lease he generates only requires his signature and the tenants.

They have different payment methods, payment plans, payment requirements, charges, marketing needs, reports, etc.

Second, pretty much every hard money lender has this same requirement.

The more familiar they are with the area and the laws/requirements for working in that area, the better.