Out of state LLC formation

[Brahm Kiran Singh]

I live in California and am thinking of purchasing some property in Virginia. I want to keep the property under it's own LLC. The question I am mulling over is - which state to establish the LLC in? Is owning rental property which gives income, considered 'doing business' in a state? My current understanding is that in that case I will be double taxed if I opened an LLC in California and own rentals in Virginia. What do other people do who invest out of state?