That would defeat the whole BRRRR method. 

@Chris Springer While you might be alleviating some tax liability somehow (although I'd imagine a city signing off on this would only do so with a tax reassessment which would defeat the purpose) I would say that the appraised VALUE would be much less as one duplex as opposed to two SFRs in the majority of scenarios.  

Hi BiggerPockets forum,
I'm a single facility rental house investor in TX. I've been concentrating in Austin and Dallas. While it's good to enjoy the appreciation, I'm thinking diversification to Houston for larger c...

If they are not in the state of business activity then it again generally needs to be registered with the state of the business activity otherwise it doesn't exist for lawsuots in that state which defeats much of the purpose of having one.You can have nested LLCs depending on your needs but that is generally used for high equity transactions, say $1m or more.

Paying it directly to the tenant defeats the purpose.

If they are not in the state of business activity then it again generally needs to be registered with the state of the business activity otherwise it doesn't exist for lawsuots in that state which defeats much of the purpose of having one.You can have nested LLCs depending on your needs but that is generally used for high equity transactions, say $1m or more.

I am tempted to fly to that place but then that defeats having a manager and I am basically adding more to my expense.

Thanks to all who came out to defeat both of these proposals that were very thinly vailed attempts to clumsily exploit class envy and resentment utilizing simplistic divide and conquer tactics.Despite our apparent great success in defeating both proposals (when it appeared that we would lose at least one, if not both), we need to remain ever vigilant as those aggressively promoting wealth redsitribution and property confiscation through highly deceptive and discrimmanatory taxation strategies will definitely be back.We need to diligently expose their "You Got, I want, Give Me" entitlement mentality if we are to preserve our California.

You can create Land trusts that do not change anything for taxes, do not trigger the $800 extortion, provide some anonymity, however they do not really provide any asset protection, from what I understand.Some investors and lawyers believe that a more complex structure combining land trusts with out-of-state LLCs can defeat the $800 CA ransom while still providing asset protection for the out-of-state properties.

That is called a self-defeating prophecy.