I think you are going down the right path in regards to defining an out of state strategy, the next step is not only defining the marketplace but also considering the group you are electing to work with.

@Natalie Kolodij If your LLC was elected as an S corporation and didn't file a separate 1120S return that generated K1 forms to report on your personal return then she did something wrong. 

Came across the concept of real estate professional recently and was curious if anyone had elected to pursue this status. 

The K-1 then flows through to each partners respective individual tax return.The LLC could also elect to be taxed as a different entity structure.

Partnership tax entities that have a disregarded entity as a partner cannot elect out of the new Centralized Partnership Audit Regime.Your tax practitioner can have the deep discussion with you on what this entails, and work together with your attorney to advise on the pros and cons, so that you can make an informed and confident decision.

Do not put long term holds into Sub S elected LLCs or corporations. 

@Gerald K.In that instance the tenant (a he) elected to continue bringing back the cleaning service ... seems he liked the apartment to be clean as well, but did not wish to do it himself.In one of our student rentals, we've baked cleaning into the rent and have a cleaning service stop-in twice a month - they cover the house, but they don't do bedrooms and we make that clear to the tenants.At one of our multi-family properties we just started offering cleaning service as an option to the tenants.

If you elect to move forward, you renegotiate the sales price. 

Even if your current withholding doesn't cover your tax, you can elect to withhold more from your W-2 job and cover expected tax.

It seems you would elect something to cover yourself even though you may never use it unless it was significant.