Obviously, a good team will be crucial for you since you'll be investing out of state.

I saw an offer like this one recently with a Navy Federal bank statement that "had $700K" in the bank and it seemed legit.. but the LLC wasn't active with the state and they had assignment of contract language all over it.

In many states, local emergency services are limited outside the state capital or major cities.Do Not Travel To:Colima state due to crime and kidnapping.Guerrero state due to crime.Michoacan state due to crime and kidnapping.Sinaloa state due to crime and kidnappingTamaulipas state due to crime and kidnapping.Zacatecas state due to crime and kidnapping.Reconsider Travel To:Baja California state due to crime and kidnapping.Chihuahua state due to crime and kidnapping.Durango state due to crime.Guanajuato state due to crime and kidnapping.Jalisco state due to crime and kidnapping.Morelos state due to crime.Sonora state due to crime and kidnapping.Exercise Increased Caution When Traveling To:Aguascalientes state due to crime.Baja California Sur state due to crime.Chiapas state due to crime.Coahuila state due to crime.Hidalgo state due to crime.Mexico City due to crime.Mexico State due to crime.Nayarit state due to crime.Nuevo Leon state due to crime and kidnapping.Oaxaca state due to crime.Puebla state due to crime and kidnapping.Queretaro state due to crime.Quintana Roo state due to crime and kidnapping.San Luis Potosi state due to crime and kidnapping.Tabasco state due to crime.Tlaxcala state due to crime.Veracruz state due to crime.  

If you and your husband can perform the same line of work in another state like Florida, Texas, Nevada I would move out of CA as soon as possible. 

Krch Realty managed these homes in several states.

On the other hand, you stated that the management firm was charging 15% and had a 15k expense. 

I'm also a former math teacher, so trust me, setting up an S-Corp for operations is NOTHING compared trying to get 30 twelve year olds at an urban school to learn math according to state standards.

Your profile mentions that you are an agent with rentals.You would want to see if you are able to claim real estate professional status.If you are able to claim real estate professional status, you can potentially offset the rental losses with your real estate agent income.Furthermore, TN does not have a state income tax allowing you to be more open with your options.Best of luck

Quote from @Nathan Gesner: If I've said it once, I've said it a thousand times.Nathan, while what you state works 90%, when you reach a certain level you become a TARGET for predatory attorneys and professional plaintiffs.

I wouldn’t mind the tri state.