In some cases the failure of a business owner to adhere to this structured operation requirement can be a contributing factor to a court deciding to "pierce the corporate veil" Which is a catchy way of saying that your "limited liability company" just became a "company" that was a joke but its pretty accurate in my opinion.Those who suggest you hold each property in an LLC individually most likely recommend it so that liability incurred against any one property does not sink the proverbial ship (all the other properties) if it fails or is overburdened by debt/obligation.

Don't think that one particular out of state market will shoot you to success or abject failure.

You could buy a larger properties to centralize management, but with little to no real estate experience that's a recipe for failure, not to mention that it's difficult to do due to the challenges with financing and getting the brokers on your side. 

The Ten Commandments for Business Failure  - Donald Keough3.

There is always drama - moving boyfriends in without permission, fighting, smoking (and fires that go with it), often unable or unwilling to pay the tiny amount of their portion of the rent, not paying utility bills, helpless to do minor maintenance, unpermitted pets, frivolous inspection failures... after all this, when they finally leave, you have to rehab the entire apartment because it's trashed.   

As with any data aggregating system, there is always a failure rate where the data has changed or was incorrect to begin with. 

Drain clogs caused by the tenant (as compared to pipe failures) are a tenant responsibility per my lease.

Failure is not an event.

Failure is not an event.

Failure is not an event.