@Greg ReeseMost small investors will benefit by having the LLC created in the state where the property is located at.Creating an LLC in a state like Nevada, Delaware, Wyoming may be better for the big players if items such as charging orders, business friendly case law, anonymity are important to you.However, be mindful that setting up LLC's in those states will add to your costs as you may have increased annual fees for annual LLC fees + registered agent fees.

However, a full or partial gift means you inherit their $33K cost basis, potentially increasing your capital gains taxes when you sell in the future.

He tells you to pay him $5,000 (or much more) to learn all the "secrets" that made him wealth, but then he doesn't tell you that his "secret" was to increase earnings, reduce expenses, save up and invest.

The Raleigh market may have increased by 40% after the Apple announcement, but it wasn't because of Apple, at least not solely.

"Getting in" is easy; making money, managing the business, with the increased financial risk of commercial properties is a whole different game. 

Because here, the proposal would increase property taxes about 5x.  

How do SFHs fare in competition with these rentals as supply increases?

Not a huge increase in cash flow, but you're picking up another appreciating asset. 

They further out the ripples go from the stone, the less appreciation your receive while the cash flow increases.

And while I agree that debt is often the cheapest form of capital, if you are looking at a project that involves some form of value-add business plan, you can always refi either when rates come down or you have increased the yield on the asset to exceed your interest rate.But like Stuart noted, for many groups, even the most seasoned syndicators, raising call cash for their deals is effectively impossible.