Generally speaking, SEC compliance is not an issue if you're looking to form a small LLC with people already known to you. 

I get contacted every week and sometimes every day by different buyers wanting to form a relationship.

That competition drives cap rates down (I have seen deals trade in the 5% cap range) and creates an atmosphere where you are competing for deals that are being sold on unrealistic pro forma's. 

I’m also including link to follow-up articles that he wrote. https://www.biggerpockets.com/renewsblog/2015/03/03/why-you-cant-make-money-on-30000-houses/https://www.biggerpockets.com/renewsblog/capex-include-pro-forma/https://justaskbenwhy.com/2016/03/31/how-much-capex-do-i-need-for-real-estate-investing/3.

I called him a few days later and it went to voicemail. 2 weeks later, he sends me the marketing package with pro formas.

Analyze properties, ask for rent rolls, P&L, trailing 12, figure out DCR, current cap rates, pro forma. 

Did you examine the pro forma?  

So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Hello guys!My name is Kevin, and I am a college graduate from Georgia Tech moving to Seattle for a job. I am extremely excited and eager to learn more about pretty much anything in real estate investing! I lived in th...

You can take an overall view of your portfolio form a total assets, liabilities and NOI perspective to see where you stand on income and net worth but decisions should be made per deal basis.