If you are a buy and hold investor you will often get profitable enough to outstrip the depreciation expense either way.Every one of your investors will likely have a different personal tax situation so I wouldn't put too much weight into a specific class of investor. 

I have a question about highly competitive markets that have appreciated rapidly, like California.

Also, the supply shortage is not just affecting the buy and sell side, the residential rental market is also affected by the shortage which has caused rents to increase rapidly.

New Kingstown is part of Silver Spring Township, which is a rapidly growing area in Cumberland County.

I don’t mind going with them, but I’d like to hear of alternatives if possible.I’m based in CA and plan on rapidly scaling this year with 2-3 out of state properties and perhaps 4 to 5 next year, so I’m trying to build the proper asset protection/liability and for tax optimization purposes would like to avoid the CA FTB franchise tax per LLC.My understanding is that the de-facto standard for doing this is with Delaware or Wyoming Statutory Trusts with properties held in Land Trusts, and then possibly layered with an operating and holding LLC. 

They are relatively inexpensive to maintain.They won’t appreciate rapidly but as long term rentals and eventually as they are sold on owner carry contracts they’re hard to beat.

Property is cheap on the near West side and I have heard many investors are expecting the stringtown/haughville area to be PRIME as iupui is growing rapidly and the revitalization is moving towards the IMS TRACK.

It cash flows so at least you’re not losing money so now you have to weight the return.

From what I've seen, Nashville still has a very low supply and is growing very rapidly, which in turn, has made the surrounding cities like Madison, La Vergne, and Hendersonville great for affordable flips. 

I've heard Camas and Vancouver are good as well so I'll be exploring that market.Portland is rapidly heading in the same direction as SF and Seattle.