I am very new to Tax deed investing in the CA US.

If you haven't already, you should be receiving your property taxes soon. 

Nevada is a landlord friendly state, 4th lowest property taxes, no state income tax, limited housing supply with tech and manufacturing jobs moving to the area from CA.

Or would it still be capital gains tax because it is proceeds from that property?

This provides me some legal protection as well as tax benefits.It depends on the person, most small time investors should just put in their personal name as long as they qualify for conventional financing. 

I have also sent personal hand written letters to people who are listed on the tax records of properties that are vacant.

In the other two, it's new to seller but they are open to the idea.As far as the sellers, one is an experienced investor who wants out but isn't ready for capital gain tax.

I can probably find someone who can come in and stretch the carpet working around her furniture, so I can try to go that route, but this is the first time I've ever received a letter of this nature and I'm not sure how to respond or whether I need to consult with a lawyer first.

Just looking to see if this is the expectation nowadays or am I way off on having RentRedi handle this for me. 37$ + tax ( approx 42$) and ask Tenant to  fill the application and pay directly instead of me being middle man.

With you, and not leading with taxes!