Escalating rent something like adding 100 per month per quarter after 6 months or whatever we work out.

The criteria being 50% loan to cost, interest rate 1/2 point higher than loan with personal guarantee, minimum loan size of $1 million, transfer of banking relation to them, and quarterly update of financial information.

From a taxation stand point it may not make sense if you ever only inted to have 1-2 properties as there are additional filling fees etc I believe for an LLC. 

I am aware that the distributions I receive quarterly are taxed at my marginal tax rate personally at the end of the year.

Pass-Through TaxationPass-through taxation is a benefit of individual-owned businesses.

B) While there are tax benefits regarding the corporate double taxation issue, that is generally priced in to the stocks and P/E ratios, and that is no compensation to pass through losses through a K-1 for direct ownership.

After the stabilization period once things are running smoothly, I limit communication to maintenance requests and routine inspections (quarterly).

We knew about having to pay of the Real Estate tax at the end of the year, but have yet to get any notice about it.

I recommend finding an accountant who specializes in real estate taxation over one that is local.

Due to the high California taxation I wonder if that is realistic, definitely not people in tech as seen in the Bay Area.