Do I need to get a CA LLC for out of state rental properties?

[Anna Kay]

Do I need to get a CA LLC for out of state rental properties if the LLC is for the sole purpose of qualifying for a DSCR loan?

I live in California and need to form an LLC to get DSCR loans. I do not plan to buy property in California with that LLC or conduct any business activities with it. I will be hiring property managers to manage the properties I purchase out of state. If I form an LLC outside of California do I have to form an LLC in California also?

Caveat that I'm less concerned about liability protection as

-I plan to get an umbrella policy

-I don't think it makes sense to pay the annual $800 LLC fee to CA unless absolutely necessary

[Robin Simon]

From a financing perspective, the answer is "No" - a DSCR lender will qualify you based on you as an individual or as an LLC in any state. With regards to the other (non-financing) aspects of LLC structure, probably best to consult a lawyer but it won't be an issue for DSCR loan qualifying