I bought 14 homes in a short period of time for gozone tax bene's those are the same as the benes that people search out for cost seg these days.. except they were much easier you did not need a cost seg report..

How many states would a hypothetical $100k note fund investor have to file state taxes in? 

Given this is where my major operating expenses fell (beyond taxes and insurance), keeping this cost lower, by average, helps my cash flow.I invest in older neighborhoods, so the 2-4 unit properties, typically have single water meter, maybe single electric, and many have radiator heat with a single boiler.  

There was one month where an adjustment to 2017 Illinois taxes decreased my disbursement a bit. 

They've also enacted a bed tax specifically targeting short term rentals.

Make a $1,000 tax deductible donation.

What are some tax considerations or other legal issues to keep in mind as an out-of state investor investing in this market? 

I don’t think arbitrage is worth it - it’s kind of like the baby step into STRs that hook people into taking all the risk and doing all the work and missing out on 2 of the 3 reasons to invest in real estate: tax benefits and appreciation.much much better to buy and own your own STRs.  

Prop tax ranges from 2.5% in fate to 2.16% in Rockwall city. 2.16% is some of the lowest you'll find in DFW. 

I think they just get NV corps for tax purposes maybe but they are not legal... and many are out right scammers..