If the offering is a typical 506(b) or (c) I would not expect the LLC's state to be a factor in whether or not it can invest, unless for one reason or another the sponsor has decided not to accept investments from particular states. 

@Tony Thomas I dont think there are industry standards for these things, there are simply too many factors that need to be considered.

There are multiple factors at play in determining your capital gains tax rate.

It logistically makes the most sense with where we're at, and I factored in standard PM costs when I analyzed this deal. 

We have a lot of people selling their homes and having a gap before finding a new one, hospitals with traveling nurses, and other factors which make this type of property desirable in our area.My question is… how does it work?

I like to get construction loans on properties with hefty cap ex costs and factor that into the deal.

These two factors are integral to the "buy & hold" strategy and wealth creation.

ISO- Anyone with experience factoring or securitizing future incentives including lump sum Historic grants, Local Sales tax rebates and Federal Income tax creditsAbbreviated Background - I am redeveloping a historic property.

The biggest factor or problem that I see is that sometimes people don't set their sights high enough, they get lost in the details worrying more about $$$ versus %, or they shoot for an industry versus the product. 

FEMA 2.0 will factor in the risk of a tsunami into the new coastal rates.