If you have a Colorado LLC, you can register it in MO, or, you can create a new LLC in MO.Umbrella insurance is really easy, only a phone call to your insurance company.

Managing this rental so far has been easy and it rents fast.Now the SE PDX market seems to be growing at a slower rate than it was couple of years ago and if we don't sell before next year April, I would have to pay capital gain taxes.So my question is - Should I sell this house now and avoid paying capital gain taxes and re-invest the proceeds back when the market hits a downturn or hold on it this house for the long term?

It's easy to fall in love with a property and end up making poor investments so this is an important reminder. 

If you have a great team, life will be easy, but you have to manage your team diligently.

@Adrian Moreno You have two pretty easy options.1) Go to the neighbors and ask if they know the owners and where they are.2) Use a skip tracing service to get the phone number and heirs of the current owner.

This information is fairly easy to find on your local city / county web site. 

@Ron Willbanks it is not necessary, but could offer a layer of protection, however, you are already going to be a limited partner and if the LLC buying the property is set up properly, then you should be fairly sheltered, especially if you aren't signing on a loan. 

One home on Green street In SF I had to foreclose on peaked at 2 mil in 88 by the time we went to trustee sale no one bid it at opening bid of 925k.. today probably 5 mil easy if not more.. and by 97 ish back to  2 mil.. who knows what will trigger the next one.. but  when credit froze in 08 there was nothing we could do if you did not have cash .here are some areas I worked in   in those days and the crash.1. parts of Atlanta I made loans on houses that were worth 150k my loans were 90k   sold this 97 build for 36k in 09.

Again just me I got to thinking well there is not time in the day to do proper client communication and service.. people are going to be calling and want specifics so to me it just seemed like something that would get pretty unmanageable in the Case of a WATER LANDING.. 

There are thousands of posts on BP, almost every day, and keeping advertisements, deal-making and fights clear from the forums is not an easy task; if threads weren't moderated the forums would quickly become virtually unusable and unattractive to the majority of people here that are just trying to learn more about real estate investing.