However, this means you’ll need to comply with the annual filing, franchise tax, and reporting requirements in both states.

You are going to need to see their tax returns to see if they are telling the truth.And what is the interest rate that they are offering you?

Here are some tips.#2  MINDSET:  Just like some people will NEVER become real estate investors regardless of time, money, related profession, - MOST people will never become real estate investors.   

Best of luck  Thanks for the tip Preston!

And if you're not already using the same paint color on all properties, you should start and you can thank me for this tip later.

Really looking for tips on what to do from investors who have been in this type of situation.

I've done it at times, sometimes 6 figures, but always do it so that there's no tax burden on my recipient.

If you're using Zillow or the tax district or almost any public facing website, I always question how good the comps are.   

Focus on absentee owners and start with the ones who live the farthest away and only own one property in the area since they have the least use for the property.You can also drive for dollars, looking for anomalies of disrepair and then look them up in the tax records and use a site like Spokeo to do cheap skip tracing.

Taxes, costs, eviction complexity, etc are going to be a much bigger factor in your success than anything else.