I'm not an attorney but my understanding is yes, you can definitely do that, and I believe things like that happen every day.While I can see some possibilities for why someone would want to set things up that way, I do have the instinctual thought that it might be over complicating things.Technically the second LLC is another layer of asset protection, and maybe you have a very specific entity structure setup for taxes which would make it beneficial to do it that way (an LLC inside an LLC), but it's worth asking the question of whether these is much difference, or much more protection, than just having you (presumably a Mass. resident) be the member of the RI partnership LLC straight-out rather than having your MA LLC be the member.Also, depending on what else you have going on in your MA LLC it may be a disadvantage to have it be a member of the RI LLC from an asset protection perspective - if someone were to be able to pierce the veil of the RI LLC then everything in your MA LLC would be at risk.If you do go with the MA LLC as a member of the RI LLC, when you go to sell the property you'll have non-resident withholding - but you'd have that if you personally were the member of the RI LLC as well.You'll also need to be careful how you sign anything relating to the RI LLC - you'd have to be careful not to sign as member of the RI LLC but as member of your MA LLC, member of the RI LLC.

They seemed to be happy and they nodded in understanding.THE SECOND MONTHSomehow during the second month, when the newness wears off and the happiness falls into a routine, the new Tenants become confused.

We only have a house or two, we say.And just because we got away with not having a professional layout when we received a mortgage for our first rental or even second rental, we think it's okay just to present a mortgage company, bank or hard money lender, just some figures written down on a piece of paper or on an Excel Spread Sheet.But what happens when the time comes when you want to really expand?

Their SFH has appreciated about 600% since they bought it in the early 80s and while I don't expect similar appreciation for our rentals, I know that significant appreciation is definitely a likelihood based on historical San Diego data.

If you have second bank account and credit card account, if not, open new accounts, and use them exclusively for rental transactions.

Second any change in a neighborhood takes 10 years.

People to make the project come together, analysts to crunch the numbers, second set of eyes to get a project , you CAN find that. 

If you sell it, you give that up.Then you can use the HELOC as a tool to get another property and create the second property as an asset.

People should always have an exit strategy, My second comment: "Always develop an exit strategy when you make a purchase." so i guess you do agree with this or maybe you don't not sure -perhaps you agreed before you disagreed?  

Only the hot air comes out and because it’s a 2 story house, it’s very warm on the second floor.The Re-Max property managers are unresponsive & very disorganized.