This is two different things.

As you begin your REI journey here is one tip I have for you:Use this website as you are trying to narrow down the places you want to invest in. https://www.areavibes.com/Its awesome because it gives you a "total livability score" & you can compare different zip codes & streets to others. 

When vetting a passive deal, every investor will do it differently because every investor has a different risk tolerance, comes from a different financial situation and has different financial goals.

I think the engineering issues on them have been resolved.I've used a number of different brands (lower price point) and haven't had issues with any of them.

We have 7 units across 3 different properties.

A lot of the success stories and content we’ve seen in the past came from a very different rate environment, so I’m definitely factoring that into my approach.For now, I’m planning to focus on the Jackson County/MO area, specifically around Lee’s Summit where I have some local support from family.

I have done a lot of these for my own portfolio, but am wondering if the tax implications are different if we do a cash out refinance for this partnership LLC and then have to "distribute" the funds to the members. 

Unlike the Bay Area, at least from my experience in Sacramento, i don't think the difference in down-payment from a duplex and tri-plex is that significant.

How is that different than the information they’re providing on the investor webinars?  

So, when investing in areas they don’t really know, investors should research the different property Class submarkets.