So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Etc, etc.Forget the politics, this is about Real Estate.Couple of things occurred in the last month around me.

My wife was across the country when her sister, a few months from graduating from college was killed in an accident when the  motorcycle she was a passenger was hit by a oil company truck trying to beat a red light.

I got into real estate investing on accident and have been self landlording for ten years.

My main concern here is after talking with the owner (my friend), she said there was previously a bad management company who didn't respond to owner concerns and who did not offer to pay for repairs that occurred outside of owner's control.

Taxes are paid when taxable events occur. 

Right now I have been relatively lucky, but last April when the shutdown occurred in my state I provided relief to all tenants regardless of situation. 

The frozen pipe occurred so the seller will need to repair it.  

Big Banks adopt this policy for a reason.I’ve experimented (in solo ventures) with less reserves and never got into a insolvent situation but if something catastrophic would have occurred, the possibility still existed.

@Manda GouvionActually, it was by accident.