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

Sorry my response triggered you.

This triggered more research as it should, and I am now part of this community. 

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.

If none of their leased space or area is being impacted then I don't think you are triggering any change to the enjoyment of the space they leased. 

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. 

We have two or three projects we may pull the trigger on.  

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.