However, this means you’ll need to comply with the annual filing, franchise tax, and reporting requirements in both states.

At year end you’ll get a summary and a tax form.

If I go the multi-unit route I would put myself in debt for a bit, which is fine for long term investment.

But, you still own house and benefits are as follows.1. tax benefits2. principal payoff on your note.3.

Here are the key numbers:Potential purchase price: Mid-$400k rangeAppraised value: Estimated at ~$500kRehabbed comparable properties (comps): ~$580-600kMonthly PITI (with 5% down, including mortgage insurance): ~$3400First-year PITI (with 2-1 buydown): ~$2900Monthly income (after taxes): ~4-5kLiving expenses (utilities, groceries, etc.): ~$1600Savings available: ~15-20% of the purchase priceCash to close: ~$34kRehab estimate: ~$34kRemaining reserves: ~$20-25kTo fully fund the rehab, I’d need to come up with an additional ~$15k in the short term, which I anticipate paying back quickly once the rental portion is generating income.

I do not want to stretch into California due to the Landlord laws and taxes. 

Do the tax benefits make it a good deal?

What paperwork should I keep a paper trail of to make things like taxes and other situations better/easier for myself?

I currently have a pre-tax retirement account with employer match and a Roth IRA invested in the stock market.

However, these programs typically qualifies borrowers based on their income, such as tax returns.The DSCR would be a good option considering you and your husband are entrepreneurs and the tax returns don't look good on paper.