I'm guessing a considerable price hike will take place and will have to pass it on to the tenants.Thanks for any help. 

Are we still expecting a considerable drop in rates, or are rates higher for longer?

There shouldn't be double taxation because rental real estate normally operates at a tax loss.The potential time that there will be a tax consideration is when you sell the property.However, your resident state(MN) will provide you a credit for taxes you pay to a different state.This will avoid double state taxation.In general, California state taxes are higher than Minnesota state taxes, therefore, you will be paying the higher of the two state tax rates, which is California.

It is still profitable, but just another consideration for people who get heart eyes when seeing the cash flow but don't realize the maintenance they are getting into. 

Consider going through all available information concerning a property under consideration and establish much detailed financial plan.

One key consideration is the market you're planning to invest in.

Are there lips where there is a change the height of the surface?

You will want to check with your accountant, however, because you will have some tax considerations.

It does not take everything about your specific scenario into consideration, etc.

So always make this one of your most significant considerations when evaluating real estate deals.