Although it does have many of the early characteristics of a traditional remote college town investment thesis, I'd say we are still a few years out from the student population truly mitigating potential vacancy issues.Merced and surrounding cities from Modesto to Fresno are still very much driven by an agricultural economy, with seasonal employment swings. 

The features and characteristics of an LLC including which state law applies is determined by which state the LLC was created in,  If talking about Holding companies proper, you would need to first incorporate the out of state operating subsidiary in Wyoming (Wyoming sub) and then also register the Wyoming sub as a foreign LLC in whichever state where it operates outside of Wyoming.  

Another strategy is to buy a house that has not historically been used as a short-term rental but possesses all the characteristics of a viable STR... large, close to the beach, has a pool or hot tub, etc. 

Your property will have specific concerns based on its individual location and characteristics.  

Tenant "wants" also drives what renovations are required and which are not.How can any national, state or city databases provide tenant pool specific characteristics?

The location determines all the long-term income characteristics, which is critical because financial freedom is a long-term proposition.Financial freedom goes beyond merely replacing your current income; it entails maintaining your current lifestyle for life.

Go to Property Characteristics, select Residential for the classification, and then enter numbers into the Unit Range. 

If that is the case, properties like these are not valued based on comps if building A is priced at $X, it does not mean the property next door that is exactly the same in characteristics is also worth the same.

By focusing on deals through this narrow lens you may overlook properties that have characteristics that will perform better over time through capital improvements, improved management etc.

The BP Forum members (like me) can time you examples but they are in different situations.Hi Sam - I am not sure I understand what your CPA is doing.It appears from your post that you have rentals owned by you personally or by an LLC that you own.Having an LLC own a property does not change the characteristic of the income.Therefore, if the activity is passive in the LLC, it will flow to your individual tax return as a passive loss.Therefore, you would run into the same issue at the individual level of having a bunch of passive losses that unless you make less than $150,000 or are eligible to claim real estate professional status, your losses would continue to be passive and therefore suspended.