You can not avoid the CA franchise tax as long as you live in CA.   

There are crazy levels to accounting and tax as it relates to real estate, but if you are looking for building a foundation I would suggest a book on amazon related to the matter or even poking around youtube for general foundational knowledge. 

You recognize the tax as you receive the installments.

I efiled for zero frachise tax .As of my knowledge the rent collected is included(filed) with federal income tax return and LLC is a pass through entity.

If you find an area where houses are getting lots of contacts and applications and you see the rent prices could work with the purchase price and the ownership costs you probably have a good area to dig deeper into.Last thing to mention -make sure to check if it is in a flood zone, as flood insurance would be an added cost, and make sure to check if there is a MUD tax, as that can be an added cost as well. 

Building permits- $50,000Property tax as commercial versus residential $30,000 during projectBonding???

There are towns here in Florida that have restrictions on this like minimum stay length and usually charge a business tax as well.

Well we got over run by the city annexed in and up zoned to Commerical / resi  and a big developer was doing a land assemblage and we sold 2 years ago for 2.2 million.. did Zero to the property other than pay 300 a year in prop tax. as stated.. took over 25 years though LOL.. 

Each tenant is therefore playing 10% of the property tax as part of their net lease.  

Im very familiar with the capital island São Miguel.