Both from how you want to structure your rental property business and how to handle things from a tax perspective. 

The business venture that went sideways?

It makes lead management way more efficient since they get to focus on people who actually want to do business. 

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

Whoever gives me the most business and has an excellent close record will first be presented with off-market opportunities. 

Most businesses, property management or not, fail due to the lack of sales, not due to the lack of systems and phone etiquette.

They have been managing fine, although not too busy, I guess because of the market.

A good real estate accountant can save them thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend that they find a tax accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.I would also recommend that they look for a accountant willing to work with them throughout the year, who can help them strategize and who is responsive when they want to know the consequences of the financial decisions they are making throughout the year.Good luck.

Lenders or investors who have short lock up periods but have years of experience feeding their business with new capital would give me more comfort but anyone who is just starting and is promising a rate of return or return of capital in a set period of time would be alarming because they very well could be reliant on fresh capital to make good on that promise and that usually ends poorly.

Looking to buy Business around Portland metro below $300k.