If these LPs cannot group activities and are not materially participating(based on the three criteria), the 25k rule does not apply to LP as they are not deemed not to qualify for active participation. 

There is very little monetary "return" on putting together a super comprehensive offering with detailed financials and multiple different exit types as this document is usually quickly reviewed by LPs before deciding to invest. 

Smart LPs understand what are the big things in the ASSumptions to look out for so they don't go into a sucker deal.

A few questions to help clear up my confusion...Let's go with an 8% preferred rate of return for a simple example.On a $100K investment this would represent an $80,000 PRR to the LPs before any other distributions are allowed.

No investor groups or LPs involved, and we also have a property mgmt company that will most likely be outside of the HoldCo structure. 

If so, to look at this on an ongoing basis, with any sort of realistic output, you need to know the total capital invested, all distributions paid and date they were paid, AND run a mark-to-market valuation to ultimately guesstimate your sale proceeds that would go to your LPs, if you were to sell the asset when you are running the calculation.

I was just hoping to stimulate some conversation and see if anyone had any ideas on how to make our properties even better. 

You want to find a real estate market that promotes and stimulates growth.

If you don't, you will have a "great tenant " that stays there for a LONG time and you lose A LOT of $$ by getting farther and farther below market.You don't go crazy and stimulate a turnover, but you don't steadily fall farther and farther below market. 

The ongoing tight housing market also reflects low- to moderate-income households that continue to rent because there’s a scarcity of affordable homes to buy.To stimulate business growth in the state, there is a need for ample affordable housing for workers.