Should not be that difficult.I read also publication 551 to know how to compute the basis.My case is simple as I do not have a mortgage, but still they do not mention brokerage fees.

Not to mention if you are using an agent it won't be long before they fire you and you need to spend more time finding a new agent who may or may not be better than your current agent. 

I'll definitely look out for the cities mentioned, which I would have never thought to consider actually.  

I realize I would have to form an LLC in the state I choose to start investing with, but should not first from an LLC in one of those states mentioned above and do I still need to form an LLC in Washington?

Funny you mention Tennessee.

Hi, I did private lending to one of my friend , he mortgaged his investment property as first lien with me.agreement was that he will pay interest monthly, and he was almost regular on that.in July that property got  deadly fire, in August beginning he paid my interest for July and didn't mention anything about fire.today, he called me  and told that he wants of pay off(but he didn't pay last month's interest).I said OK start processing for payoff, but pay me last month's interest asap, then he told me that house went on fire and he is hoping to get insurance money and then he will pay, he has no money to pay interest .Now, my concern is should I wait and watch or I need to take some pre-action to make sure that I get insurance money since I am on first lien.That was my first ever lending :-(. 

I then can run totals for the ones I mentioned above and built a few charts. 

@Kevin McAnally In addition to the meetup that Michael mentioned (we have a meeting coming up on the 19th, check out events section) feel free to check out the following event on meetup.com scheduled for September 25th “Quad Cities REIMG - Welcomes Kevin Schoonmaker with Bank Orion!”.

You mentioned here that Stessa wouldn't be good for 10+ properties. would you mind expanding a little more on why that is? 

I don't want to bank on appreciation so I am not considering it but I guess technically I should mention that it's a growing city.