Quote from @Paul De Luca: @Pranshu Adavadkar1.

Hi Angel,Another option as a California investor is to use a Delaware Statutory Trust as a holding company.

If you can fix it up, I am with @Paul De Luca get a loan and then BRRRR to leverage your cash the best way possible. 

I think there is a big opportunity in Delaware County or Chester County.

Are the California investors here using California LLCs, or perhaps Delaware Series or Nevada LLCs instead?

Inventory is very low in these areas such as Delaware county, and Montgomery county.

I assumed the penalty (if there's even one) could be "de-escalating" as the note matures.  2. 

Thanks for the mention @Paul De Luca and @Jonathan Klemm.

De-kitchen-ing is usually the most costly part of this.

Otherwise it has to be "registered" with the state and it's just a whole bunch of extra paperwork, etc.The best practice I've heard is individual LLC for each property, which are in turn owned by an "umbrella" LLC from Delaware, Nevada, or Wyoming for the purposes of anonymity.