As mentioned, the process was really smooth and their service is top notch.Yes you are paying a premium for the product, but the benefit is the ease of mind. 

We didn't start forming entities until after 6 properties were in service.

I am not providing substantial day-to-day services.

I also know a lot of California investors who have done what I have, the main reason being CA charges a franchise tax of $800 per LLC. 

The main benefit of an LLC over home insurance is that it provides personal liability protection, so if something goes wrong, your personal assets are safer.

My neighbor said he thought there might be a free government provided service but he can't remember the name.   

Establish the value based on your own market analysis.Your property is a rental once it is placed in service - typically the date it is advertised as available.Check your home owners insurance policy and make sure it covers rental operations - I expect it does not.

Two suggestions: 1) Open a savings account in your own name, start with $20 at a bank that does not have any monthly service charges. 2) Read Rich Dad Poor Dad.Good Luck!

Fourth, getting funds out of a 401K is a bit tricky; typically you have to quit, you might get an in-service distribution, other? 

Who has had success with paying for buyer's lists and what services have you used?