How much exposure do I have?

Ironically its the investors in the layered LLC's who believe they are hidden in the cloaks of secrecy and better protected who end up in  the most costly and drawn out litigation while giving the plaintiff attorneys reason to take a more thorough look under the hood.Keep your LLC ownership simple, carry appropriate insurance, make sure ever vendor you work with carries appropriate insurance and those who perform work functions most likely to lead to liability exposure list you ad additional insured (not merely certificate holder) and it should go without saying, avoid negligent conduct.

(I have a special needs trust for my son so have dealt with the complexities.)My bigger concern would not be your liability exposure but doing something that could potentially endanger the support benefits your brother is entitled to.

Up to you on how big of a deal that exposure is.

When I asked them why they lowered it they stated cause they wanted to lower their exposure to the market.

I want this to have as much exposure as possible.  

Recently, we created the first (as far as we are aware) residential assisted living focused fund and have successfully raised for multiple homes, giving our investors and us exposure to the cash flow, and equity upside that comes from owning the real estate and the business.

That's how I got hooked on the buy and hold model his company sells.Even with all that exposure, and the fact that he's a TV host, it was hard to find and really dig into the details of his company online and there's not a lot of specific content on Morris on BiggerPockets.

Maybe your situation is different and if you don’t feel comfortable in the neighborhood then this may be a moot point anyway.As for FHA, my understanding is that you must intend to live in the house for a year  it sounds like you did intend to, but due to unexpected circumstances- lead exposure and unexpected unsafe neighborhood- you have to move.

An annuity is definitely a different level of risk exposure than this type of an alternative investment.