An LLC shields personal assets from business liabilities, while S-Corp taxation allows you to reduce self-employment taxes by taking a reasonable salary and distributing remaining profits as distributions, which aren’t subject to payroll taxes.

Yes, as S-Corp owners receiving W-2 wages, employee deferrals to a Solo 401(k) are subject to FICA taxes (Social Security & Medicare).

Do you include specific clauses in each of your subject to deals spelling out exactly how insurance on the property will be handled?

As you mentioned, the IRS requires distributions (RMDs) so they can get their money in a timely manner.

This requires careful structuring and compliance with IRS rules.Installment Sales or Buyouts – Instead of distributing properties outright, investors can sell or buy out their respective shares over time, spreading out tax liability and reducing immediate capital gains impact.LLC Restructuring (State-Specific) – Converting the corporation into an LLC taxed as a partnership may allow for a more tax-efficient asset distribution.

After about 1.5 years of distributions at about 2% annual they have paused distributions.

You'll want to get your name on their distribution list. 

it would be interesting to see the distribution between them..

Quote from @Alan David: i HAVENT MENTIONED THEIR PRACTICE OF WITHHOLDING ANY FUTURE EARNINGSON THE INVESTMENTS ONCE YOU MAKE A DISTRIBUTION REQUEST, IN MY CASE THAT IS TWO YEARS( SO FAR) WITH THE FUNDS JUST SITTING IN MY ACCOUNT DOING NOTHING.i IMAGINE IF THEIR FUND HAS A LOSS i WOULD BE  SUBJECT TO THAT TOO.  

How are you paid and are those distributions underlying property performance based?