In this case, if the property is in RI that's where I would form the LLC.If you were to form the LLC in Mass then you'd need to pay two states annually, Mass (state of formation) and RI (as a foreign entity), which would be double the cost.The only minor thing is that as an out of state owner you'll need 1) a registered agent in RI to be on file with the RI Secretary of State for any communications like annual report reminders, to receive service of process if you were to be sued, etc.; and 2) to register with the RI Secretary of State as an out of state landlord.If you used a RI attorney when you bought the property in RI, I'd inquire if they're willing to be the registered agent for the LLC, and in fact you might even want to use them to form the RI LLC too.If you don't already have a relationship with an RI attorney I can recommend a few, but if you don't have anyone trustworthy in RI who can act as registered agent then you might want to ask the prospective RI attorney if they're willing to be the resident agent before you pay them to form the LLC for you (some attorneys don't want to be bothered as you can get a lot of junk mail).All of the above is just my personal opinion and experience and what I'd do in your position as I understand it.

I am working on starting a 10m$ equity fund from foreign investors.Thanks Vinod

He is a foreign national and has a good job, great renter but she doesn’t think he could qualify.So now she has given me some basics and I mentioned we could even do owner financing to avoid realtor’s fees and if I were to default, you’d have even more equity and you could sell the property again.

LOLI never said that "all foreign-born applicants" are a protected class. 

I am a foreign resident, so S Corp is not an option for me.

During my time abroad, I filed 1040s but my reported income was low because our businesses were in my foreign wife's name. 

Oh yeah, don't forget you need to Foreign File that entity in every state in which you do business AND then you get to file their State's Taxes too :)

Entire chimney is foreign to me as ours tend to run through the structure, but I am happy to help if I can.

@Hai LocForeign investors have to be mindful of a couple things when investing in US real estate taxation.Is the income generated considered ECI(Effectively Connected Income), FDAP(Fixed, Determinable, Annual, Periodic), FIRPTA(Foreign Investment Real Property Tax Act).Is there a treaty between the US and your country?

It might be accurate but it would confuse people because it is used in foreign investments with a different purpose.The correct term in the United States for what you are talking about is a Promissory Note with Equity Kicker.