He mentioned that if we filed as a Sch C, we'd get a refund of $17k.

Now you have a brand new property that has no mortgage, rents for $2,000 a month with $300 a month in taxes, insurance ect…profit $1,700 a month.

Im in NJ, but not sure it's the right market for me due to very high taxes and cost of houses. 

Your tax preparers?

In your case you have a lot of losses in the time you own the property but these losses transfer through to your personal tax return, so you can recover some of it and not have to count the full nominal amount.

Heck, you gotta pay taxes on it too, and you also run the risk of the unforeseen and problems along the way with a rehab.Lets see, I paid my fees and got back on MLS last May, and signed up for Privy.

How can I get over the counter tax deed list.

You will learn about property management, taxes. contract law, and people management. 

I have been looking for a home in Southern California... which I do not want to go the typical route because of competition and also my tax returns are not so friendly to conventional lenders.  

Each LLC is multi member so they probably file taxes as a partnership.