When doing your first property, it's hard to buy something that needs lots of work (unless you have lots of free time), so you're stuck looking at undervalued nicer properties that don't stick on the market long.What made it hard for me is that both myself and my wife needed to look at the property before buying, and with kid events every night the time to go look was super limited. 

We are not limiting our search to a local CPA because we intend on doing long distance investing. 

I suggest a condo because the maintenance is minimal, the sq ft is limited, so you’ll be able to control your expenses (typically) better.

What area should I start up my LLC? Where I live with my buy and hold properties or where I would like to invest out of state where buy and holds are cheaper?

If you start out with three to five good deals that you've been able to quickly do some value adds, you should be able to start buying with cash, and from there you are only limited by the number of good deals you can find. 

They monitor transfers and will appeal the taxes if they suspect some thing; it is only paperwork to start the process.As well there are certain risks / issues you should be aware of;- As noted above, you have to take on the sellers original purchase cost which limits future depreciation- If there are / might be any outstanding liens, they will be yours to deal with- The tri-annual re-appraisal, is being done this year.

Your tenant base is limited since they have so much to choose from.  

Once you find the maximum limit you see if there are programs matching your wallet.

Located inside city limits within walking distance to shopping and restaurants.

You run the numbers, if the numbers make sense at a specific price point to make money worth your time then thats your limit, if not.......then its not for you.