That is not a benefit for you, nor any kind of evidence that they are worthy of becoming a resident.That issue aside, I would not allow someone with a recent eviction on my property unless the "unfortunate circumstance" was unlikely to recur AND they otherwise have a strong historical track record of making payments AND they would put down a very large security deposit.

We would like to build our own relationships, gain knowledge and find deals.

I think there's still a lot of room in the country to do this successfully and where the locals can also benefit.

These states impose a state tax on any realized gains from the sale of investment properties.

It will familiarize you with the basic terminology and benefits.

There are benefits to having a second LLC over the first. 

I could certainly see the benefit of using them as a correspondent to take you out of deals..

@Otis Clayton You say "I am at the point that I want a partner with some cash and credit to refi the deals I get from marketing and talking to sellers"Based on that you are looking for someone who has cash and credit, wants to invest/benefit from real estate but does not have time to find deals.Look for someone like that, be clear on their role and your role.

Your not getting any STR properties via arbitrage your just managing someone else's property and the owner is getting most of the benefit. 

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.