If I invest in residential RE, it is not to achieve returns barely above passive options.  

If I put myself in the shoes of the outside partner/investor friend, I would be very concerned because: 1) unclear and/or potentially conflicting business plan, 2) even with clarity in the BRRRR business plan, unclear in the viability of pulling it off with these market conditions, 3) the chances of dispute seems very high, especially if you're going to live in. 4 years ago, I went through a  similar thought process when purchasing an investing property with mainly my family money, while considering an outside investor to rehab for higher STR ROI... 

Just looking at their website,  there is no useful or helpful information that a sophisticated investor would normally require (to even give them a chance of being considered).

FYI, a Cost Segregation Study will "not" increase your chances of an IRS audit.

Buying in those areas makes more sense for STRs as the municipalities rely on the revenue.Less chance of a lot of regulation.

Good.PPS: When reading or listening to the smack talkers, the ones who kick when one is down…you are next if they get the chance.

A general rule of thumb though (not a hard rule) is that if a market has a prolonged history of vacation rentals such as towns whose commerce is very dependent on tourism like beach or mountain towns, then there is a good chance than those towns have established their airBNB regulations decades ago and are likely stable.

Houses in Memphis will barely be worth more than they are now 20 years from now, so you have to hope to have a good solid cash flow to make it make sense.So I would say really take a look at your business and see what opportunities there you'd be foregoing by investing in RE. 

Not that there isn't some opportunity, but investing from afar, I don't really have the chance to get a crew that can do the rehab on the homes that I think would turn a profit. 

Everytime a new victim comes forward it increases the chances and shortens the timeline for something being done. (800) CALL-FBI and (800) SEC-0330.