Here are the major three pros of each state as I see them.A) Alabama Pros = Arizona Cons:A.1) No Excess Proceeds sale option.   

You will need to withdraw the excess above the legal maximum (plus earnings) in both scenarios.Withdraw the Excess – You can withdraw the extra $8,400 plus any earnings before the tax deadline to avoid the 6% excess contribution penalty.

Is there any reason why going bigger is bad when leverage is not excessive and underwriting is conservative?

Quote from @John Underwood: SC will give the defaulting owner the overage if they request it.An owner (or former owner) requesting overages in South Carolina or Texas won't prevent you from getting the property at a discount.Under the new Arizona law, an owner requesting Excess Proceeds before the foreclosure is finalized will prevent the tax lien investor from acquiring the property or making any profit besides the generally very low interest.I am worried that might even happen if a junior lien holder requests such excess proceeds.To make things worse, when the 30 day notices are sent to the homeowner, they need to include a statement regarding their right to ask for excess proceeds.

"Do I need an LLC" may be the #1 asked question on this forum.Like Cole mentioned, it's about risks tolerance and how much headache you want, kind of.Do you need one?

For your current home that you plan to rent, setting up a separate LLC can help limit liability and keep finances organized, but it depends on your risk tolerance and long-term plans.

@Patrick Roberts to your point about risk tolerance, I think that pretty well describes me.

Buy & Hold is still one of the best long-term strategies in 2025, but like any approach, it depends on your market, financing, and risk tolerance.

(high risk tolerance, lower rebab costs, access to HML/PML, etc.)   2. 

The law prevents excessive subdivision by restricting who can split and how often, ensuring that newly created parcels remain practical for development.