In the event of a lawsuit or creditor claims against the properties, your personal assets would generally be protected, and only the assets owned by the LLC would be at risk.Tax Advantages: LLCs offer flexibility in terms of taxation.

Full-year net loss of $(9.0) million in 2023 with net loss of $(21.2) million in the fourth quarter of 2023. 

What I'm trying to say is that I recommed giving us more details or if you don't want to put personal info on the internet find a in-person tax professional or accountant who is familiar with rental property taxation to determine your eligibility for deducting rental losses and ensure that you're compliant with tax regulations.

We then went back to retirement accounts, but this time with SOLO401Ks so we *could* leverage and *not* have to worry about UDFI Tax at all.

There shouldn't be double taxation because rental real estate normally operates at a tax loss.The potential time that there will be a tax consideration is when you sell the property.However, your resident state(MN) will provide you a credit for taxes you pay to a different state.This will avoid double state taxation.In general, California state taxes are higher than Minnesota state taxes, therefore, you will be paying the higher of the two state tax rates, which is California.

Federal taxation still applies everywhere: IRS.Would it make sense to open up some legal business entity in one of those states?

@Thomas Talbert your CPA should be telling you that you need to make yourself a W-2 employee of the company and pay yourself a monthly paycheck.The payroll tax deductions will help avoid a huge end of the year tax bill.Also, too large of a tax bill will piss off the IRS and they may charge you penalties + interest for not making quarterly estimated tax payments.

Find an accountant that specializes in real estate taxation and amend your return if it has already been filed.

My guess is most operators are suspending monthly/quarterly payments right now, either because they have to, or it is the prudent thing to do to keep the deal moving forward.   

We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.These syndication can provide an 8%+ cash-on-cash return - providing you monthly cash flow - and a 15-20% IRR over the length of the project.