@Isaac HarjonoAs @Christopher Smith noted, California paints with an extremely broad brush regarding what it deems to be "doing business" in California.If you are a California resident and managing-member of the LLC, the LLC will almost certainly have a California Form 568 filing obligation even if it is organized in another state and has no California source sales, property, or payroll. 

Lee mentioned 4 mil, I bet it is closer to that than 400k.

@Walter Lee Bandy Jr I bought my 1st investment property in 2015 and had this same question.

There are restrictions for those who have previously violated securities laws (Bad Actor Carveouts) but as long as you don't violate those, you're good to go.Agreed with @Lee Ripma, getting proper advice directly from an attorney is a good idea.

@Christopher Lee Johnson congrats!

@John Lee personally I prefer to stick with 3/1s as they command a little more rent and theoretically attract larger families that may stay a bit longer.

@Christopher PhillipsGreat thanks!

@Christopher Charles I absolutely love that!

@Christopher PhillipsI'm looking to buy real estate 

@christopher Phillips @ty patillo Thank you both for your input!