No need to hold on to the property (with liabilities and taxation attached).

@Robert FrazierThe root cause of the housing shortage is politicians that keep the price of housing high via regulations and taxation.

There is no cookie cutter approach to taxation and definitely no "one size fits all".  

Even if Raleigh appreciates at half the rate as SD, your total return is going to still be superior.The kicker to this example ... you're making good money in CA - you're paying a minimum of 9.3% in state income tax, maybe more ... in NC, you'll have a flat income tax at 5.25%. 

Start earlier / younger Learn about RE taxation 

John,Yes, it is best to find someone who is familiar with real estate taxation, multi-state taxation along with understanding the state tax laws that you invest in.The good thing about investing in Tennessee is that they don't have an individual income tax.Therefore, you don't need a professional to understand Tennessee individual state taxation laws...since there are noneBest of luck to you in your search.

I need to continue to use my CA address on my W2 for taxation purposes. 

So, if you collect $100 in rent for the year, you pay tax at your ordinary rate and I think also self-employment tax.

Originally posted by @Bill Hampton:Anthony,  Since you are looking for an accountant who specializes in real estate taxation, I recommend looking for a tax strategist who is willing to work with you throughout the year, not just when preparing your tax return.

Yes I have heard of the possible double taxation if a Canadian has a LLC opposed to an entity such as an LP.