To specifically answer your question on taxes (of course consult your CPA) CA is ruthless if you live in CA and have any interest in any LLC’s no matter which state they are in.  

With all of your calling, lists, door knocking and communication campaigns, I would keep in the back of your head, the necessity to be very very clear, succinct, and upfront with every aspect of your endeavors with a  borrower, especially if they are in, or on the brink of being in foreclosure, so that you do not run afoul of the foreclosure consultant requirements in California, and many other states.

Read up or consult an attorney about the legal differences.

You use the same type of lender, reno consultant, and contractor.  

I do have a request for a consultation out to legal counsel, but haven't heard back yet. 

Let's consult the pre-recession numbers and see if there are any takeaways. 

Be sure to consult with knowledgeable CPA regarding tax implications if you decide to go this route. 

Always consult with your attorney before you rely on the above information.

You do need to consult with an attorney and CPA to ensure it's done properly from both perspectives. 

I am always trying to learn, yet there is so much more knowledge to gain....Advice from accountants, consultants and CPA's is always appreciated.