.- I'm interested in investing in a local franchise and being very hands on so as to hone skills,  network etc (S, B quadrants)- I initially let youtube pick the order of the BP podcasts for me so I quickly stumbled into the Grant Cardone session.

Even if you create an AZ LLC (or any other state), so long as you are managing from California, you are "doing business" in California according to the Franchise Tax Board, and therefore subject to CA taxes. 

Yes, I work for a national property management franchise and our office covers Indianapolis and the surrounding areas.

In the time since I first joined biggerpockets,  we've launched a roofing company that's being franchised nationally, a toxicology lab, a scrubs company with Patch Adams' foundation, and a handful of other ventures - but investing in real estate I feel like a permanent neophyte!

When running a business (i.e. rental house or a McDonald's franchise) there are "capital" items and "operating" items.

Buy a Paul Davis franchise or a ServPro franchise, someone who already has program vendor contract.

After your  franchise is created and making you a **** load of money then think about a LLC.  

Subway franchise.

National company, locally owned franchise.

Attend local landlord association meetings.Contact any local HomeVestors franchises you can find.