Is there a reason you're coding the main entry as US, rather than as the resident state? Maybe there's an OR / CA interaction that I'm not familiar with (and both of those states do things differently, so maybe that's the case), but my multi-state returns work just fine without having a -1 entry for the non-resident state.

I'm confused. 
I think your understanding is correct.

Rental income and expenses should be sourced to the state where the rental is physically located being a resident state or a nonresident state.

@puravidapto If I did that, I think I would need a tax return for that state. And a REP state fee. Right?

You most likely should be filing a return for the state where the rental is located.

Most likely you are right.  Texas has a mandatory reporting even when there is a loss.  He didn't want to file, and we don't have the Texas business Web file number, which makes for more work with just two days before 10/15

The other states have losses.

Usually, I take a quick poke at the instructions for nonresidents.

No matter what, you should not code a state X income as a US income and suggest others to do the same, unless it is a free state. To prepare a state return and to file the state return are two separate tasks, if you do not prepare the return, it is your issue. If the client does not want to file, that is their issue.

Thanks.

I realized yesterday that I could prepare a state without a charge by listing X for the SSN.

Good advice