So, if you create an LLC in another state, you will likely need to register it as a foreign LLC in California.

If you can figure out how to market to a foreign market you might be able to get longer stays than just the weekends.

As a foreign investor, I definitely want to do as much due diligence as I can and learn along the way. 

As far as I see, aside from the obvious downfalls of potentially misjudging a foreign market, most issues can be solved with proper due dilligence (connections, research, etc) and the right property management in place... 

Foreign property can only be exchanged for other foreign property.

We currently don't have any other rental property and we are looking for advice regarding Foreign Accrual Property Income (FAPI). 

Too many foreign investors have been taken advantage of because they don't know the markets and neighborhoods.

I'm assuming you are talking about condos that are not in areas that are not being inflated by foreign capital such as Brickell or Sunny Isles; these investors are geared more toward capital preservation so they're willing to pay much more for condos and will out price you on any property leaving the area with no deals.

The LIBOR scandal, together with the fairly recent FOREX scandal, is a big wake up call to those that don’t believe in financial corruption, such as in the example of Lloyds Bank.

This is all foreign to me.