And not sure if suing the state of CA is a good option since it may fail miserably.

The reason is that one wants to be able to properly avail themselves to the laws and protection of the corresponding state where the property lies.

I was hoping the rate cuts in the last 12 months would have had more of an impact on mortgage rates. 

I live around Huntsville, the epicenter of northern Alabama.

Sherman does seem interesting though because of the lower cost and growth potential.  

Though, this process will be the same for the other state (if you created a CA LLC you may need to register it as a foreign LLC in the state in which you are doing business/holding property).

I think it would give it a little bump in value but it all depends on the buyer.

In Illinois, when an agent does that, there are functions normally expected of the realtor that they are legally prohibited from doing.

are you allowed to edit the chart of accounts? 

If you did a cost segregation study on the property in the past, you may have to recapture the depreciation taken in the past.capital gain tax rates are 0, 15 or 20%There is also a potential 3.8% Net Investment Income Tax.Also, don't forget state income taxes depending on what state the property is located or your state of residency.Best of luck!