Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

He acts as project manager, sources, finds the subs, and even oversees the staging.  

No property is perfect, especially an older one, but with good management, most risks can be minimized upfront.

Good day Bigger Pockets,I am a real estate investor living in Puerto Rico.My father of 78 years old is declining slowly mentally, and I am going to begin helping him out manage his properties and organize his finances and properties.

Continuing to house hack allows you to expand your investments at a manageable pace and maintain a lower risk profile, aligning with your commitment to your family's future.Our whole portfolio is here, and it all was made possible in the beginning stages by house hacking and equity build.

We are trying to figure out a good split of equity and cash flow since they will likely be putting more down upfront but they live out of state and we would be doing a majority of the management. 

Small enough but experienced enough to have good referrals (the profile pages of QIs here on BP can get you started) means you'll be in good hands since at the largest QIs in the country your experience will be dictated by the sales manager assigned your file and not necessarily a senior consultant.You've had a good experience with yours to date.

My aim is to not only profit financially but to gain in the process some intangible assets, such as project management skills, getting to know reliable professionals (i.e. realtors, contractors, designers, etc.) for the long-term, getting acquainted with the local market's promises and pitfalls, and basically adding some entrepreneurial muscle going into my next project.My strategy is to go small: find a second-hand apartment in a good location (I don't have enough funds for a GREAT location...); no more than 60-70 m2 (that's about 650-750 f2) to, among other things, lower renovation costs; 1-2 bedrooms, street facing and with a lift (if said apartment is above the second floor); with good bones, i.e., needs only partial renovation.

Hi,I'm looking to see if there's anyone that knows property managers that do room by room rentals or any advice on this in the Austin area.

I believe that this is due to (finally) rising interest rates deflating asset values, which is highly correlated to the exponential increases in income for top earners like CEOs, executives, money managers, RE investors, and Private Equity Groups.To me, the only logical stance is "rational optimism" (I heard this term from Morgan Housel).