As others have pointed out,You can only take the section 121 exclusion for the unit that you live in - If the 'allocated gain' to your unit is less than $250,000 / $500,000(married filing joint), you don't pay capital gains tax on the unit you lived in.However, the unit that you did not live in is not eligible for section 121 exclusion.

a) You will need to file a nonresident Arizona income tax return that reflects the income you earn from your Arizona rental.b) You will not owe TPT and don't need to set up an account to deposit it.

(lose a job, file bankruptcy...etc.) 

But to put their complaint in writing and you will keep it on file. 

The good thing about Texas is that the state does not have a state income tax.The only potential filing oblgation that you can have with Texas is if you have an LLC and therefore required to file a franchise tax obligation.

You will have to file state and federal tax returns here while you operate the property.

Would both LLC’s be filing tax returns?

Here is the current list of cities:http://ritaohio.com/MunicipalitiesI am rather sure that the list has only been expanding over time.As a person/entity who earns rental income in any of these jurisdictions, you are required to file a return not only for the state, but also for RITA.

For example my W2 job and my LLC are both in Florida but let's say I buy and flip a property in Georgia are those taxes settled at the time of the sale or is that something I would have to do when I file my taxes normally. 

(I would question it since the main home is not renovated) what are the chances that they did everything right on the ADU but didn't have the funds to do the home… hmmmm doubtful Make sure they have the permits (call the city and see if they have permits on file).