People responded by explaining that residential mortgage lenders are looking for US-based customers, who have their residence, income and assets in the States.How do they view foreign debt?

I mean they get done but its so foreign to what I am used to.

I am happy to provide insight as I work extensively with foreign national investors in the US.

If you are "doing business" in CA, the LLC should register in CA as either a resident LLC or a foreign LLC. 

Quote from @Greg Miller: Quote from @Theresa Harris: BC is not very friendly to foreign buyers. 

Look, I know the whole concept of a 1031 exchnage can feel a bit like reading a foreign language at first, but trust me, once you wrap your head around it, you might never look at property taxes the same way.

In spite of that, more and more foreigners visit, move to, invest and buy real estate Mexico year after year.

@Phil Petite Forming an LLC in Tennessee is recommended if your rental properties are located there, as it simplifies legal compliance, avoids the need to register as a foreign LLC, and aligns the LLC with Tennessee's laws for property management and tenant disputes.

You mentioned that if I create an LLC in AL, I don't need to create a foreign LLC in CA.

As a foreigner it is recommended to buy tru a bank trust https://www.tulumrealty.net/Buying_In_Mexico/page_2481994.html,