There's a lot that can go wrong throughout a transaction and a good agent will do everything they can to not only negotiate for you, but limit your risk and keep you protected. 

@Lee Ripma is correct - as a California resident actively engaging and managing an LLC from California, California will declare nexus and require a registration, a tax filing and a minimum $800 fee each year.Marketing into other states may or may not create nexus (depending on each state's laws, so look them up) and need to register/file in that state, but as @Wayne Brooks indicated, you will most certainly need to be registered in any state where you want to sign contracts and otherwise conduct business in that state.From each state's point of view, anybody who wishes to sue you must be able to do so in the state where the transaction took place so you must be registered in that state with an agent who can accept legal service on your entity, should the need arise. 

It is extremely rare that a buyer or seller in a residential transaction will engage an attorney.. 

Better trust leads to better communication and a smoother transaction, leaving me more time to go get the next deal.

Just to be safe I would have an extra "renter insurance" notice that your renter's sign that says you recommend getting flood insurance so you are covered.

i don't plan on living in the property but would like to make sure its safe for my tenants.My realtor thinks i should look to a nicer part of town instead but this means i would have to spend more time saving to come up with the down payment since those properties are at least 50-60K more and dont necessarily generate that much more cash flow.

In order to be on the safe side I would also recommend you pay to have a lead based paint representative ensure the residence is safe.

I am looking to make an offer on a house but it has a clause in the Covenants that all leases must be approved by Board of Directors of HOA. Is there any legal documents I should have them sign if they approve of my t...

So as long as my rehab budget plus 10% or possibly more for overage would be pretty safe?

While you're at the attorney, I'd ask him some questions about some of the newer rules like the Safe Act, and Dodd-Frank.