Here is a site Ive started using recently.

I'm not an attorney but my understanding is yes, you can definitely do that, and I believe things like that happen every day.While I can see some possibilities for why someone would want to set things up that way, I do have the instinctual thought that it might be over complicating things.Technically the second LLC is another layer of asset protection, and maybe you have a very specific entity structure setup for taxes which would make it beneficial to do it that way (an LLC inside an LLC), but it's worth asking the question of whether these is much difference, or much more protection, than just having you (presumably a Mass. resident) be the member of the RI partnership LLC straight-out rather than having your MA LLC be the member.Also, depending on what else you have going on in your MA LLC it may be a disadvantage to have it be a member of the RI LLC from an asset protection perspective - if someone were to be able to pierce the veil of the RI LLC then everything in your MA LLC would be at risk.If you do go with the MA LLC as a member of the RI LLC, when you go to sell the property you'll have non-resident withholding - but you'd have that if you personally were the member of the RI LLC as well.You'll also need to be careful how you sign anything relating to the RI LLC - you'd have to be careful not to sign as member of the RI LLC but as member of your MA LLC, member of the RI LLC.

@Susan Chan Most of the turnaround projects I've heard about involve one of the partners overseeing the management at the site.

It can actually get complicated.

BP is a site dedicate to RE investing and wealth building. 

You have to be careful because most of the time the deposit will not be refundable and most if not all of the properties you have to bid on site unseen.

I have seen the property and there does not seem to be any large repairs at first site.

Welcome to the site Jeffrey.When looking at the Cleveland market I see a ton of investors get totally shocked by the bottom dollar prices you can find in some of the rougher neighborhoods of Cleveland.

I see they do purchases & refinances on their site.

We offer a van for use as well, but most owners see about 60%.Our returns are helped by an on-site 2nd unit which we rent full time to caretaker /landscaper.