Using a CA LLC owned by a WY LLC could preserve some benefits, like charging order protection, but doesn’t eliminate CA filing fees.

Because I benefit from more business oriented books I also like Who Not How and Gap and the Gain by Dan Sullivan and Ben Hardy.

First there is no reason to buy a Townhouse "all cash" instead put 40% down and reap the benefits of an extrenly low rate, No PMI and the option to escrow.

However, if you have 2-4 unit rental properties, you may not gain much benefit from listing on these sites, as they primarily focus on commercial properties.

The benefit of purchasing in high cost location is the higher building value, thus greater depreciation potential.

If that's not the monthly income, you are arriving at your cap rate by using incorrect expense ratios/expense figures and/or the property benefits from an extremely favorable tax abatement which skews the operating costs.

Truthfully, I don't think a Capitalization Rate of 8% is terrible plus you'll have an appreciating asset along with the tax benefits.  

While he may not have money to invest...there are multiple ways he can still derive income from real estate. 

Consulting a tax professional is key to ensuring compliance and maximizing benefits.

@John Paul, it's time to graduate from "old school" and start living in the 21st century for your own benefit.