I'm wondering about a few things:- Should I buy out of state, so the markets and location and landlord laws are better,   or near where we live, to simplify the process so our first time goes more smoothly?

I've also been trying to find reliable systems to simplify the process.

That may be over simplified and completely wrong but I hope someone will correct me if so still trying to learn!

The lawyers that we've gone to are telling us that we are required to pay for them to open an LLC and put the home in it (lawyers are saying the paperwork for an LLC is $1k) and we are trying to stay simplified and not pay the extra amount for the LLC so we can take action on the real estate deal. 

I seem to remember it being a simplified alternative to the preferred rate of return structure.

(I did not include fees and commissions to simplify the numbers.)If I just sold the property I would have paid taxes on 100k gain and 40k depreciation recapture.

@Johnny Corbett Generally the cash flow from multi family properties will allow for a greater return simply because of the efficiency and costs associated with purchasing say a duplex vs a sfr (obvious variables simplified).

I am going to over-simplify all of them, talk to your CPA for more info. 

To simplify my understanding...

-you don’t have to pay interest on a large fixed sum of money until you find or are ready to pull the trigger on a deal-it allows you lock in some or all of the amount at a fixed rate so your protected against rising interest rates ( given the current market conditions I believe we will see a couple more increases from the Fed this year which will increase borrowing costs for any variable rate products)- See this attached article that does a good job of simplifying it https://www.investopedia.com/mortgage/heloc/fixed-rate-option/