With the current interest rates, it is a lot less work than a rental and she'd probably make about the same (if not more factoring in property taxes, insurance and repairs). 

Now mind you, depending on what type of consulting you are in, your exposure to liability from that business activity may be very limited, thus, a sole proprietor may be fine.3rd issue, where would the rents to your property be deposited to?

Depending on cost and effort to do this, it may present an opportunity in San Jose.  

She should.Then you could 1099 her and not worry about payroll taxes - for agent-type services.For the maintenance work she does, also 1099 her by having her bid each job separately.Of course, speak to your tax professional about all this first, to make sure this would all meet IRS self-employment requirements.

Looking for state income tax free properties and a possible move for myself to a state income tax free state as well.

I don't think it's worth paying for the repairs for a tax deduction, if the tenants want the AC they are welcome to pay for it themselves and they are.

Buyer could even sue to make you honor the sale, depending on how invested they are.

As retired CPA, I find it amusing to read tax advice from those who have no clue. 

Outside of NYC, 1k-2k; depending on location.

But, it also depends on where your properties are.