I'm currently building my team with Tax Advisor/CPA, RE Attorney, REI friendly agent and designer first on the list in that order.

Forming an LLC for your rental property can offer liability protection, but no real tax benefit.

You'll get pretty good depreciation when it comes time to do the taxes.

If anyone has advice—whether it’s general tips or insights about these markets—I’d really appreciate it! 

Tax Breaks- I am not an accountant, but I recommend conversing with one to see all of the benefits to owning a rental property.

They would get that $500K tax free and the rest of the tax would be deferred in the 1031.A very elegant solution that puts $500K tax free in their hands now. 

Avoid basing it on uncontrollable factors like taxes or insurance.

If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

Ask yourself, why would the federal government pay MORE than market rent and waste our tax dollars?

However, in California, each LLC incurs an $800 annual franchise tax plus gross receipts fees if revenue exceeds $250,000, and property insurance may cost more.