Are you going to live there also, or do you want to operate a shared housing model in a single-family home with tenants?

That applies to any turnkey operators as well. 

. $40k a year for not doing much is a great investment on $40k unless you are putting in a ton of work into the property.Who operates the property?

(nexudus.com)Target Audience: Co-living primarily attracts students, young professionals, freelancers, and individuals relocating forork, offering them fordable and community-centric housing solutions.Key Players and InvestmentsLeading Companies: Prominent co-living operators in the U.S. include Common Living, Bungalow, and Outsite Co., each contributing to the industry's growth through innovave housing solutions.Invement Trends: The sector has garnered substantial attention from investors, with projections suggesting the asset class could grow up to £50 billion by 2020.

If you dont have time to do it yourself, you can usually rent the equipment and hire an operator hourly for less than what a full service company will charge you.

What, if any, are the ramifications if the operators did no due diligence to make sure investors needed to be accredited? 

Many investors start their journey by diving into individual distressed property deals, but if you want to grow into a high-volume operation, it’s essential to change your mindset, strategy, and execution.

Which makes me think it’s a smaller operation.

Another right of an LLC Member is to get copies of all Operating Agreements.

Registering as a foreign LLC allows you to maintain continuity with your existing business structure, branding, and EIN while operating legally in the new state.