there's a tremendous demand for inventory - both primary residences and rentals - and so buyers are willing to accept lower yield than a lot of us think makes sense. 

So many intellegent and supportive individuals on here, you will get out what you put in.

A great location demands a higher price. 

I've also held of holding properties in individual LLCs that are owned by one S corporation, which allows for a 60 / 40 split between ordinary income (regular tax) and dividends (capital gains tax rate).With the goal of minimizing taxation and liability protection, what would be the recommendation from more experienced people here?

When you start raising money, the kinds of investors you're going to get are individuals who want to make a better return than the stock market. 

But I think it has more to do with how different individuals handle what is technically an invasion of their space and privacy.

What are your demand drivers? 

Moreover, for someone in your position just starting, it's best advised to partner with an experienced individual to mitigate risk and adequately learn the process.

The location hasn't had a lot of demand which has made it challenging for him to find an end buyer. 

My wife and I owned, operated and sold five RV Parks; three to individual buyers and two to Blue Metric.