This could potentially lower your overall tax liability, but may make things slightly more complicated from an administrative perspective. 

my personal belief is the asset protection across state lines is over rated. until you get big and you are a target with many millions at risk your best action is good insurance, the out of state stuff is pretty complicated and expensive for a small investor,  best practices, and good insurance should always be your first line of defense, then the LLC firewall, and last the out of state LLC, the out of state LLC does not offer added protection, just more hurdles for someone to jump to find you, setting up a Nevada or Wyoming LLC as the parent LLC forces someone that want to sue to also serve you in that state, and petition the court for who the owner of that LLC is.

I would say my practice is very similar to yours, albeit not quite as complicated.

Getting your real estate license (assuming just a salesperson and not knowing your state law) is a complicated question.For starters as only a salesperson most states require you to work under a brokerage. to gain any of the benefits of the license.

How do you decide how much rent to charge and it is very complicated to get started doing this?

What complications if any do you have to look for when buying a home that has had all utilities shut off?

@Kerry BairdThank you for taking the time to write all that.....Yes there are differences, but a lot of it it typical American complication for the sake of it, and terms that don’t immediately mean the same in English !

@John Warren i agree wholeselling is far more complicated and a tougher road but i teresting none the less .

This indicates that you have an interest in a partnership or LLC.Your taxes does get complicated as now you will receive "K-1's" from these syndications.

@Ashish Acharya is correct in what he said.Interest income is considered portfolio; not passive.Taxation of performing notes and non-performing notes can differ with taxation of non-performing notes being more complicated.The complications come into practice when terms of the non-performing notes are changed/revised.