Thanks Shirley, lots of learning, whether it was corp structure for Canadians, taxation, how to purchase, financing , rehab….

Just a wild guess but I'm betting you don't want to operate a church. https://codes.ohio.gov/ohio-revised-code/section-5709.07(A) The following property shall be exempt from taxation: (3) Real property owned and operated by a church that is used primarily for church retreats or church camping, and that is not used as a permanent residence.

A Traditional IRA will convert what should have been an optional gain taxed at cap gains rates into a mandatory tax at ordinary income tax rates. 

Any thoughts out there about a couple of things: vac rental market in these areas, taxation, overall insight, etc. we have secondary thoughts about Big Bear and Frazier Park, CA, but investment market is very tight here with Palm Springs area mostly closed out.

In the event of a lawsuit or creditor claims against the properties, your personal assets would generally be protected, and only the assets owned by the LLC would be at risk.Tax Advantages: LLCs offer flexibility in terms of taxation.

What I'm trying to say is that I recommed giving us more details or if you don't want to put personal info on the internet find a in-person tax professional or accountant who is familiar with rental property taxation to determine your eligibility for deducting rental losses and ensure that you're compliant with tax regulations.

We then went back to retirement accounts, but this time with SOLO401Ks so we *could* leverage and *not* have to worry about UDFI Tax at all.

There shouldn't be double taxation because rental real estate normally operates at a tax loss.The potential time that there will be a tax consideration is when you sell the property.However, your resident state(MN) will provide you a credit for taxes you pay to a different state.This will avoid double state taxation.In general, California state taxes are higher than Minnesota state taxes, therefore, you will be paying the higher of the two state tax rates, which is California.

Federal taxation still applies everywhere: IRS.Would it make sense to open up some legal business entity in one of those states?

Find an accountant that specializes in real estate taxation and amend your return if it has already been filed.