You could even set up a Texas holding LLC and register it as “foreign” in California, but that still leaves you paying California’s $800 fee.

You can use things like depreciation, 1031 exchanges, or even gifting shares down the road to move wealth to them with little to no tax hit.What market are you thinking about building that portfolio in?

My investors, which are just family members and are not in the LLC, they give me cash and in exchange I pay them a percentage of the profit after a house I previously acquired with said cash sells (buy, fix, sell).

My investors, which are just family members and are not in the LLC, they give me cash and in exchange I pay them a percentage of the profit after a house I previously acquired with said cash sells (buy, fix, sell).

-Mexico citizen, born and raised in Colorado, and over the past few years I’ve been actively investing in Mexican real estate — mostly in presale condos and long-term or vacation rental markets like Guadalajara, Cancún, and Lake Chapala.I originally started by looking for affordable, well-located properties for personal use, but as I dug deeper, I realized there were real opportunities for long-term appreciation, rental income, and geographic diversification — often with as little as $20–30k down.The process isn’t as complicated as people think, but there are definitely key things to understand, including:How foreigners can legally own property in Mexico (especially in restricted zones like the coast),How presale contracts and developer relationships work,What kinds of rental strategies are viable in different markets (Airbnb, mid-term, or traditional long-term),Currency and exchange rate considerations, title safety, and banking between the U.S. and Mexico.One major advantage of presale in Mexico is that many developers offer in-house, interest-free financing during construction, allowing buyers to spread out payments over 24–36 months — without involving a bank or mortgage process.

So if you use a 1031 exchange to buy the land. 

I will be buying new or very new homes or duplexes with a 1031 exchange.

So you only have a 3-yr window after moving out, and that window expired in January 2025.At this point your options are:- pay the tax if it's manageable, and sometimes it is the best option- 1031 exchange- a couple of tax deferral alternatives similar to 1031 exchange- move back for 2 years to earn a partial exclusion as described by @Bill B.

Continue to live in the home and rent extra bedrooms either MTR or STR maybe to foreign exchange students (I know 2 people who do this but neither are in Sacramento).  

You can put delayed financing back in the picture.Wishing you the best with your 1031 exchange!