Does that mean it's on a roll and will go a lot higher or is it likely to do what it always does and correct?

As long as the location was in the path of progress, and the units themselves had already or the ability to add features like off street parking, in unit laundry, etc. 

If you go in willing to learn you will be on the path to prosperity.  

Please make sure you have all the correct disclosures and everyone knows what's going on so you do not get in trouble or anyone else.  

Texas is also the poster child of land in the path of progress richs being made. 

I liked real estate so I got licensed, worked on a bunch of different RE strategies, started developing and managed to get myself stretched thin very quickly again, I basically made the pendulum swing way too far and had to consolidate again to find my path.

I've read everywhere that they do not.Can someone explain which one is the correct choice and if any extra taxes are involved if they need to be on the LLC?

Chris is correct.  

@David C. is absolutely correct. 

I believe subject to transactions, done CORRECTLY, between KNOWLEDGABLE participants, with FULL DISCLOSURE, are typically successful transactions that have benefits for both sides.