For any syndicators/operators based in California, have you faced any resistance from potential investors to the LLC being deemed doing business in California and paying California LLC franchise taxes?

There's always a high demand for homes, qualified buyers, perfect weather, and so many other great things.

Most are in Mpls or St Paul, but you will find some first-tier suburbs with large duplexes.  3-4 plexes are as common as a Vikings Super Bowl outside of the two cities.Within 45 minutes of MSP airport: This will be no problem, everything is within 45 minutes of the airport, especially in multifamily.Areas with a small town/ neighborhood feel are a big plus: South St Paul would have this feel so would Stillwater but that is probably more than 45 minutes from the airport with any level of traffic or bad weather.

Practically, when you seek to turn the unit, do your best to move into one room or the garage (if garage water/weather tight and no electronics in cold winter) and clean the unit and re-rent. 

I've seen it a couple of times, and it was obviously worse when the weather was warmer and it's barely warm at all right now.

@John Franczyk on the tax front, there is no expense you cant write off, or business tax benefit that cant be taken weather you are an LLC or a sole proprietor historically, its all pass through anyway, for example if you have a HELOC on your personal home, and use the money for business purposes, the interest and expenses are deductible as a  business expense. at the end of the day it makes no difference, unless you are avoiding  SE and filing as an S-Corp, but thats for active income, not passive.

It tends to resist wear better.

Highly leveraged players will get knocked out first, large players with deep pockets will weather the storm and will start to acquire the excess supply.I had a very interesting conversation with a guy who's job it is to crunche numbers for REITs and pension funds - they will go all across the country for a solid 3% ROI.

In fact  such homes are often of superior quality because they are built in climate controlled indoor plants rather than lots of inclement weather. 

And if you're buying for long term, you can weather downturns and ride them out as long as you're getting cash flow.