Live in CA. Buy Elsewhere. LLC anywhere?

[Jaclyn K.]

We just bought our first cash-flow investment property out of state. We live in CA. We are interested in setting up an LLC, but have heard conflicting information as to where it should be.

We have been advised to set up an LLC in Nevada due to some specific advantages. (BTW, I would love to discuss this further some other time; perhaps in another forum.) My immediate question is this: Is this possible, or are there specific rules about having to set it up in the state in which you live or in the state in which you are purchasing property (i.e., doing business)?

Any feedback would be appreciated! Thank you in advance.