Buying Property Out of state - California Resident.

[Elijah Skinner]

Been listening to biggerpockets for awhile, and am finally ready to make the jump into real estate.

I currently live in California, where buying properties to cashflow is just not practical, and am looking to invest out of state most likely in the Texas or Florida areas.

This year, my plan is to purchase a multifamily home in one of these locations.  I am currently more interested in a great cashflow as opposed to appreciation.

I am not sure if i should open up an LLC or not. It is to my understanding that California is pretty harsh on LLC's which might not make it financially worth it for me to use one.

let me know what your thoughts are.

Thank you everybody.

-Eli

[Landon Bleau]

Elijah, it's my understanding that it doesn't really matter what state you live in, you can open up an LLC in any state. Ie if Nevada is more LLC friendly, just have your attorney setup the LLC there. However, just know it's not necessary to have the property in an LLC, many just have large umbrella policies to cover them.