The real design is in the site planning, scientific floor plan and the bones and meat that's underneath the skin of the house that actually makes the house comfortable to live in. 

In regard to section 8, be careful with trying to get higher rents than market.Your best section 8 tenants aren’t stupid and are very sensitive to location.  

And I feel the ideal portfolio can benefit from the diversification of both.1) Holdfolio isn't a match for me, personally (due to not enough experience, skin in the game, etc).

What is the best way to handle it so that both LLC members have a skin in the game?

Just remember you are spending time and money to improve a space that isn't yours and you're not able to take the improvements when you leave, ownership should have some skin in the game especially in a new build.   

Concern: LA’s landlord laws, headaches from self managing, a good deal may still have tenants occupying it, if I ever leave it's an alligator so it costs more than the income it makes3️⃣ Out-of-State Rental – Get skin in the game sooner by buying a cash-flowing property elsewhere.

To play devil's advocate (and keep in mind I have no skin in this since I'm in a different market):-You want to tailor to investors, then be prepared to sell at an investor price. 

@Kyle DeboerEveryone is going to want to see some skin in the game.

Even with HMLs, they would either want to see reserves, or you would still need to put in a little 'skin' into the game to make the deal workGood luck!

Obviously it is always a good idea to respect folks time, but find someone who also has skin in the game, investing where you are investing, can talk about their experiences, and also has built a network of folks who can support you after the transaction as well.