But I am not able to understand what happens to WA state department (Revenue, State Labor and Industries, Employment Security) Tax warrants (Judgements) against the owner of the property.

This seems like a pretty unusual and complicated business arrangement that warrants getting a lawyer's advice.

Whereas, non-warrantable condos are much better received by lenders. 

During appraisal process, Lender told me that they won't be able to finance the condo as the condo is "non-warrantable condo". that gave me a shock and didn't know of this.

Both have their warrants and both cost $ but seems like they might be well worth it.  

After a search in the FHA guidelines I see:“The appraiser must determine if the subject property possesses sufficient remaining economic life to warrant a long-term mortgage, assuming a reasonable level of continued maintenance.

There simply are not enough actual emergencies to warrant the need.

I think there is enough in this "drive through area" of California to warrant its own forum.

Your situation might warrant these structures ( to avoid CA franchise tax on various LLC) but It would be beneficial to talk to someone who is not trying to sell you the setup fees of these structures. 

In such a case it would probably warrant me taking a flight there.I'd like to see how others on the board manage properties from other provinces, e.g.