You may also be required to file a non-resident state tax return with Alabama.Filing a NY tax return is more difficult than it was in years past as NY is not following many of the federal tax laws.

If so a base fee of $600 for a partnership federal and state return sounds very reasonable.As @Brandon Hall mentioned, if the partnership had neither items of income nor items of loss during the tax year, a federal return is generally not required.However, you will generally not be able to avoid a CA Form 568 obligation if the LLC is registered in California, even if it had no activity. 

Federal Regulators tend to hate real estate investors, so they come down heavier on banks that do a lot of work with real estate investors.

South Dakota isn't very restrictive and federal guidelines are vague. 

I can say, no one is wholesaling an REO property from my portfolio with the amount of regulatory oversight i have to deal with on a state and federal level.

Certainly not federal housing laws.

@Andrew P welcome to being a landlord-this happens to the best of us.My first instinct is to let it go and have accountant deduct it as a lose to lease.The rental real estate loss allowance is a federal tax deduction available to taxpayers who own rental properties in the United States.

If it is stupid money I would pay all my debts and invest in municipal bond funds (tax free from federal, state and local) and live / invest off of the interest.If not stupid money then it would depend on how much and what the world is like at the time (real estate in my area is over priced in general - I'm sure there is a deal out there somewhere). 

In my discussions with other appraisers and landlords, most landlords aren't friendly to marijuana based businesses due to the federal legality issues.

You might try Tammy Saul of Federal Hill Mortgage.