@Lor FaraGenerally, CA residents are taxed on worldwide income, meaning all of your income earned in any state will be taxed in CA if a resident. 

California will generally tax any income earned in its state and sourced to its state. 

If I need to unlock it so they can set it at a desired temperature, then I need to be open to do so.

Trying to convince your buyers that these sub $100k rust belt houses in Detroit, Cleveland, Toledo etc....are better for long term appreciation than one of the most desirable cities on the planet isn't the move.

The numbers always work as long as you buy in an area that continues to be desirable.

DST's have low returns like 5% and lots of fees, but other syndications like mortgage notes can earn up to 12% out of the gate with no record of failure, thus potentially offsetting that initial tax hit in the long run, but you have to do the math. 

I would rather pay more and earn less on each transaction and scale it (with little headache), then pay less, gain more in the long run and deal with a lot of stress and headache in a short run.

A certain percentage of tenants will pay late, a certain percentage will default, and a certain percentage will require eviction.The “problems” increase as the desirability of the property decreases.  

Reading through some other forum posts, it looks like there are much simpler partnerships, entities, or offerings that would meet what I am trying to do:My Role:-Decide on properties to purchase, mostly SFHs-Establish LLCs or other business structures to hold the real estate and distribute returns-Purchase properties, using loans as needed depending on the ROI/cash flow desired from investors-Act as property manager for the properties-Depreciate properties held in business entities to minimize taxable income to investors-Distribute returns to investors-Create investments that have high cash flow (CF) and low appreciation (App) , moderate CF and App, low CF and high App-Find investors from connections, friends, and family with no public advertising-Advise in a minimal capacity on tax and real estate strategies-Send investment reports to investors-Be fiduciary to all investors-Receive compensation from PM and other management work I do related to the investmentsInvestors:-Can be non-accredited -Invest as little as $1000-Can use retirement accountsWhat references can people recommend for me to learn about business structures, partnerships, securities, taxes, or other topics to get me started on learning what will work for my goals?

It's gotten better over time for me to connect with buyers, earn their trust, and figure out what drives them.It's not enough to just talk about numbers in a negotiation; you also need to know what the seller is going through and what their top goals are.