When you sell the home you take it out of your inventory and the property gain or loss is considered ordinary income (I am not a CPA but previously a registered tax preparer).  

The other reason is to save LLC setup and annual fee expenses.Many states will require an LLC from another state, to register in their state to legally do business AND pay a fee.

I think I have to register and then time available.

Or you can directly meet them by registering to real estate events around you: https://www.biggerpockets.com/forums/521-events-and-happenings 6.

I would contact a securities attorney to verify if what you are doing needs to be registered.

So, if you create an LLC in another state, you will likely need to register it as a foreign LLC in California.

You'll likely want to at least register the LLC in that state if not form it there.

I recently registered on bigger pockets pro to start investing for myself. 

Whoever you hire, be sure they understand the new 2022 changes to TX Series LLC, registered vs ordinary series.

Predicting the numbers using BP Calculator:Purchase Price: $77,000Rehab (financed using HML) : $22,140Final Down Payment/Closing Costs:   $16,000Total All In: $115,000Assuming refinance at 75% appraisal:Rent:  $1500Mortgage after refinancing ($105k, 30 year, @7%):    -$593Expenses (insurance, taxes, Capex, vacancy):    -$570Net Monthly Cash Flow:   $385Equity: $35,000 w/ $10,000 left in the propertyAfter closing:The day of closing I went straight to Home Depot, picked up some cheap Kwikset locks and changed the locks on the houseBaltimore City requires you to register the property with the city within 10 days or they will fine you.