I realize market evaluations are complicated, but generally speaking (i know there are exceptions and every house is special, etc., etc.)

All of them are well represented by turnkey providers (myself included) so if you follow the keywords in the marketplace you'll get a deep understanding of what market prices & rents you can expect.As for advice on the act of investing out of state itself it's not really that complicated to buy out of state.

It seems like you may have over-complicated things and made them harder than they needed to be with the LLCs

It's not really that complicated to buy out of state.

This is far more complicated than regular depreciation, and I highly recommend you get help from someone who has done it before.

Unless you have the very complicated HUD spreadsheet for utility projections, there is no way you can know what amount HUD will be paying for rent vs. the tenant. 

Of course, OOS investing always ads another level of risk/complication, in that you can't just drive by and make sure your property is being maintained, etc.

@Ram Batchu it complicates issues and I wouldn't allow it.

The main point is that houses are complicated systems, and only experience and practice will help you catch things.

@Alex KnightGenerally no, cap gains and dividend income are portfolio income, not passive income.There is an exception if you invested in an investment partnership, and the investment partnership is in the trade or business of trading, not merely investing.This gets a little complicated and I would advise you to consult your tax advisor if you think you might fit the fact pattern.