Consult an attorney, one specific to taxes and LLC's that can speak to it better, but setting up the LLC in the state the property is located doesn't necessarily exempt you from California taxes (or something like that). 

@Pedro Amador Some of the the best ways to find off market commercial and multifamily properties is to compile lists from city and county websites if available or through a paid service like List source, Reonomy and CoStar or you can use free resources like Loopnet, CREXI, Ten-X commercial, Craigslist, tax database, general networking, brokers, property managers, title companies, environmental consultants, building inspection companies, appraisers, landscapers and other companies that service commercial and multifamily properties and driving for dollars.The real key is in how you approach the owners and then the follow up.

MartinA little about myself:Working as IT Consultant.

You will want to consult with a plumber as some units are sealed and some require lubrication every so often.

*Not in Canada, not giving legal advice, consult a professional*I would just remind you to make sure that you process all applications fairly.

I rented a $775 a mo apartment once to an IT consultant who made $45 an hour he had 8 mos left left on a yr contract at the time and had plenty of reserves if his temp assignment was not extended or renewed.

I am a part-time investor and owner of a tax return preparation, financial planning, and business consulting firm in the Atlanta area.

How about a tenant screening consulting company?

My boss is an architect and he signed the drawings I stayed up all night fretting over so that we didn't need to pay an architect or engineer, my parents let us stay with them when the construction schedule flew out the window, and our HUD consultant was always a phone call away when we had a question. 

There can be more complexities to it and it is good to consult with a tax advisor/CPA firm about the most advantageous way to set things up.