One important distinction I determined was between the investment in the funds vs the investment in the property.

Evidently Bigger Pockets has given me the distinction of being one of the top recent BRRRR contributors which I find ironic as I am generally posting about flawed logic many BRRRR investors use in vetting investment opportunities.

@Daniel Ulie you have a distinct advantage from your flipping background, you are familiar with the work and expense involved in repositioning a property.

So I'm not sure what distinction he's making.

But contrary to what many on BP would tell you, I personally don't think this is a crushing fee when you think about it providing you with a clean and narrow registration of the LLC in CA and thus, by extension, availing the manager of the LLC (presumably you) to the laws and protections of CA state law.3)  A quick distinction between the LLC v.

This distinction matters.For tax purposes, there's a concept of active participation.

Not sure if it still holds that distinction.

I've seen local market has two distinct trajectory, good house with good neighborhood is selling over the top.But not so good house even in good neighborhood doesnt receive much bid, this is actually opportunity that I'm chasing. 

I believe your distinct knowledge of your marketplace (licensing, restrictions, "hoop jumping") is an advantage and could separate you in an M&A environment Tim. 

The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route.