I'm in an area out of the corporate limits and have the ability to rent the house by the room.  

What kind of corporation do you have set up (LLC, S-Corp, etc)? 

This isn't something I'd recommend.Normally just using an LLC without making an election to be taxed as a corporation is the way to go, but being in California you do run into the problem of the annual CA LLC fee.

The individual counties have tax liens, was this part of a business (corporate entity) that owed sales tax?

Passive income is my ultimate desire and getting away from the corporate 9-5.

I finished school and currently work in a corporate job, I also currently have my real estate license in New York and have worked with buyers and sellers part time.  

C-Corp taxation is one of the highest structures and is subject to "double taxation" on the corporate profits and again at the shareholder level when the profits are distributed as dividends.

Anyone who has spent time in corporate America will recognize this reality. 

Often, for a variety of reasons, they don't want to be identified and they shield their ownership behind Delaware or Nevada corporations or complex arrangements where other people show up as owners when, in fact, they are not.

@Al Beahn Yah, I'm so with you, I'm more than ready to get out of corporate America.