If you set up an S corp or LLC, you DON'T have to file a return.  

If we do all of the banking in LLC1's name, would listing the PERSON that owns LLC2 as an authorized signer pierce the corporate veil?

There is an abundance of supply, high price tag, it's more of a corporate travel town than a vacation destination (meaning that 1-2 bedroom units are in most demand, which puts you squarely in competition with hotels). 

I did it myself in AZ through  AZ Corporation Commission here in AZ.

For Euclid you must have a local PM : Per E.C.O. 1761.02(b)(2), if Owner/Corporation resides outside of Ohio, Owner/Corporation must provide alocal manager who resides in or has a place of business in Ohio.

Any corporation (IMB, Google, Automotive or etc) building anything in Louisville?

SMLLC is considered a disregarded entity unless you made the election to be taxed as a corporation(C or S)

I am not aware of anyone investing by themselves who is using a Corporation for tax liens.

After 7 years of business ownership, we now are both working for bigger corporations and now ready to get back to diversifying our portfolio and want to start accumulating real estate properties. 

Commercial real estate (businesses, corporate and residential complexes) is the ultimate goal.