Otherwise you are gambling.  

You can start with Option 3, but when you decide to upgrade to option 1, you have lost the anonymity in the process when you transfer the member to your holding.Option 2 is a no go, as if you need to go to court, lets say for an eviction, the court will not recognize your out of state LLC and you will have to foreign register it in that state, making you pay the fee in two states instead of only one.Option 4 is a personal decision regarding your risk appetite.

I recognize your livelihood is in part from OOS investors that invest in your market.  

Unless you want to gamble and invest in start-up companies, most other type of investments don't produce much yield. 10% CCR on a $100k investment is only $10k/yr.

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.

Now recognize there are limitations.

Rent range $650-750(3br 1 bath) on some properties..Most above poverty line making $2500-3K a month...Most want affordable homes to live a certain lifestyle..Nice cars, clothes, travel,gamble (one pays for private school), etc.....so it varies...I require 3x rent...Better success for tenant and self...

As I do this, I will start to recognize when houses are undervalued.I would start to get myself on wholesaler lists.  

Good on you for recognizing that hiccups arrive unexpectedly and prevention trumps a reaction.

It is a calculated gamble.