Those two items are of vital importance for investing out of state.

I would make sure to keep an adequate reserve in the LLC for operating costs.4 If we do flip few properties, does it justify to LLC the properties right after we purchase them, or we can wait and see (if we could not sell the house, and then LLC it as rental property)The only reason I say yes to LLC them is to keep them as a separate project and keep another layer.

If the contractor or service provider decides to cut expenses by sacrificing these vital coverages, then I do not want them doing any work for my business.

If they are local to the U.S or not (adds layers for commercial loans for the borrower if out of country plus the tax exchange rate issues etc.)

A small layer of accountability goes a looong way!

In many cases, putting the loan through an LLC is another layer of insulation for the lender that the loan is not intended for a primary residence.

I could probably try going with one but through my discussions with all these banks, I think they have a set number of key metric items they use to determine their "layers of risk" with a buyer and having too many eggs in one basket with a borrower seems to be one.Plus, sometimes, local banks reach a limit on their ratio that they literally have to shut off the spigot to these types of loans.

Roofs need extra layering material (to protect from all the ice and snow), many plumbing systems use cast-iron drains (which are tougher to tie into than PVC), many houses actually have wells for water (ours used to, and now we have to abandon it properly), electrical codes are different (this should actually help us), etc.

You could add an extra layer and set up a land trust to hold title in as well.

For me it just adds an extra layer of protection.