I am currently putting a fully paid property up for rent.  

Most banks will not exercise this right if the payments are made current and continue to be paid on time.

As of  Jan 1st 2019 I have raised the rent for both of the 1 bedrooms from $625/month to $685 One of the tenants did balk but they paid it because that is still under value by about $50-60 The garage rent has been raised to $140 from $100 The renter of the garage made no issue of the rent increase.

I have around 10K in equity paid so far.

@Jason DiClemente -- yep, POF's are provided with cash offers as well as pre-qual with financed offers. 

The night before our official move-in date, the landlord provided our agent with keys so we could move some boxes in the garage and get a pre-emptive start on the move. 

You will most likely be credited for what you paid in one state on the other state's tax return.  

Taxes are paid in the same year, not in arrears, so you'll need more money at closing to cover what the sellers have already paid.- 1% transfer fee when buying property paid for by the buyer.- Inheritance tax. 

Those that have housing would not be able to do it as it would be additional income making a paperwork nightmare when the renter paid late or early.

The mechanism for avoiding double taxation in these circumstances is usually a tax credit for taxes paid to another state.