I just get the impression that most times they are fairly accurate on the tax at closing, so it doesn't really come up all that often. 

I don't want to get technical, but even Coops are not "Real Estate" since they are corporations.Coops don't even pay a Mortgage Recording Tax (at least in the past) because the MRT was a tax on Real Property and Coops were not considered that for Tax purposes.The Negative Cash Flow example is REAL and happened occasionally to properties in my portfolio.For NYC and many other highly appreciating places, CoCR will keep you out of those tremendous markets.

Courts have reclassified such deals from L/O to "disguised sales", forcing instant taxation of the entire gain. 3% and $9k may not be high enough, but keep it in mind.

I would prioritize finding an accountant who specializes in real estate taxation over one that is local.There are 20+ accountants on this message board who specialize in real estate taxation.

This is probably a CPA/Tax professional question - which form of business entity should I pursue to minimize taxation for foreign investors and for myself? 

There are about 20 accountants on this message board who specialize in real estate taxation.

If an IRA has an equity stake in such a business and does so on a regular or repeated basis, then an IRA is subject to taxation on Unrelated Business Taxable Income (UBTI), which is designed to level the playing field and protect tax-paying businesses from unfair competition.As such, for an IRA to participate in such deals, it is best to do so as a lender. 

You acquired real estate that is both a personal residence and an investment property.As such, some items such as property taxes, depreciation, mortgage interest need to be allocated appropriately.There are a couple of accountants in the NYC area that specialize in real estate taxation that would be able to handle your issue.Good luck on the search.

From a taxation standpoint, wouldn't one WANT the profits from self storage investing to be treated passively rather than as earned income? 

@Michael BishopHave you ever taken the cash out proceeds of a syndication and 1031 into another syndication avoiding that large capital gains tax at the end of a syndication where the sponsor sells the property(s)?