Would forming LLC in states that do not require ‘physical presence’ in any state be beneficial in anyway?

If the name of the game was ONLY about getting the highest returns without regard for risk, there are plenty of casinos in Las Vegas who would happily take the other side of that trade.

My good friend of many years and his significant other are moving into my current home temporarily while they search for a home of their own, and my question is should I have them physically sign an agreement or paperwork prior to moving in?

In his book he roughly says, you don't need to go physically look at a property with untrained eyes if your investing out of state.

The property is "in town" so to speak so utilities are near the building site.Clinton, IA has a number of good economic trends going on with a land based Casino, a new Purina plant and some positive downtown reconstruction. 

This would be beneficial because I would have something physical to follow exactly to a "T" to help me avoid any potential roadblocks or things that could be mitigated with a good system/checklist.

The other thing to keep in mind is many people chose careers that they didn't like, have demanding bosses or work physical / service jobs.

., earning income from other than your own physical work or being employed by others)! 

He smokes a lot, sometimes inside his unit but he masks scent with incense that makes my entire property smell like a casino. 

I prefer real estate because it is tangible and physical.