@Paul Merriwether  did you read all the citations on my link- lots of legal opinions from Franchise Tax, State CA, etc - Prop 19 is regarding the child wants to keep the house, moves in and property tax stays same but can be increased annually. 

One just purchased and put in place a postal franchise; the other teamed with a locally well known chef and put in a restaurant, and a franchised day spa.  

@Alonzo Moreland - be careful with turbo tax or other national franchises like H&R block, I just corrected some major mistakes for new clients and saved them a few thousand by amending.Similar to investing out of state, working with a CPA somewhere else can be just as easy. 

I own 5 franchise locations and am up to my eyeballs.

So the above, is directly in response to your question/strategy BUT, I would certainly consider NOT SELLING THE LOT NEXT DOOR... especially since you said you're seeking 'additional cash-flow' -- if you sell, it won't be recurring cash-flow instead it will be a one-time infusion of cash into your bank account and then its done AND you won't have much control on what happens next door aside from what restrictions you have placed in the deed... why not instead of selling consider... offering it as a 'ground lease' whereas, the person seeking the lot is allowed to build on the lot but then will pay you rent for the use of the land... this would be similar to some commercial agreements or even mobile homes where the tenant owns the structure but you own the land on which it sits on.. it's also quite similar to how McDonalds and some other franchise businesses operate it's how they are able to ensure that the properties being built are built and operated in accordance with their vision, if a tenant does not build it or operate it 'correctly' then the Landlord will have leverage in ensuring that it is rectfied... because after all you do still own the land and may terminate lease if the terms are violated. 

It shows how dishonest American businesses are compared to other countries.I never met a business owner who stuck with the PPC advertising with the exception of some nationwide franchises.

From Black's Law:In equity all kinds of property; real or personal, which are capable of an absolute sale, may be the subject of a mortgage; rights in remainder and reversion, franchises, and choses in action, may, therefore, be mortgaged; But a mere possibility or expectancy, as that of an heir, cannot.Though I wonder if a court would find that an option is a possibility or expectancy and therefore unavailable to be mortgaged. 

Vacasa, Turnkey & iTrip are all of about equal size, only Vacasa & Turnkey operate like big companies while iTrip is a franchise model.

One of the things that I'm running into,  is trying to figure out how to setup entity structures to avoid the $800 CA franchise tax fee for every LLC you open (regardless if it's in-state or out-of-state).

Own a semi passive franchise or 10.