If I have three rental properties in three different states, where are taxes paid?

Some things that jump out at me:1) Many cities have codes that establish the number of unrelated individuals that can live in the home, so you will need to do some research on this in your area. 2) You may need commercial property insurance, as your insurance company will likely consider this a business exposure.

I settled on one that was in state but about 2 hours away from me.

Tennessee doesn’t have personal income tax but if we create an LLC we would have to pay state income tax.

Should I buy this multi family here in NE even though I'm looking to move out of state?

But for a loan in a good city to approved i think it has to have income to cover the mortgage and the expenses. 

Depending on which state you are in, talk to an attorney and draw up a very strong agreement.

As the post states.

I live in an area with very large incomes, and low house prices compared to the rest of the country - there's dozens of cities and towns in Canada like this, so don't paint the market with a broad brush. 

. $125 of it is the city's licensing fee.