Assuming your biggest concern is federal taxation, and not state, you'd probably be better served by engaging an Enrolled Agent, particularly since your investment activity will be straddling at least two states (CA and TN).An EA can help you decide what entity structure best serves your investment goals, and can usually recommend great accounting software and bookkeeping resources.While I'm not an EA myself, I work closely with a great one that serves one of my overseas clients.

How would a more experienced investor handle this to avoid heavy taxation.

If you're open to working remote, there's quite a few individuals on here that specialize in real estate taxation.

We are moving into a sky high taxation atmosphere, decent chances that C-class is going to be very sec8 dependent.

More importantly, tax records that show they pay almost 4x the property tax amount as the surrounding properties. the taxation rate itself is on par with the rest of the city, and what I expected to pay, it's just the annual *amount* that currently varies hugely from this property to their neighbors.

Typically, LLC's and partnership have pass-through taxation, meaning that you will be responsible for your own taxes and your partner for hers. 

I don't know what options you have available, but personally I prefer to defer taxation down the road as much as possible.

I recommend finding an accountant that specializes in real estate taxation.

Klint,Most accountants are busy at this time of year and may not be taking on new clients right now.I recommend finding an accountant that specializes in real estate taxation over one that is local.

With that said, each city government website will likely have a subpage or section address rental properties, with links to various information on taxation, reporting, etc.