Being a responsible person has nothing to do with the financial calculation for rate of return or cash flow. 

NOTE: an aggressive attorney can still track you down.LEGAL PROTECTION: By placing your assets in an LLC, you legally separate them from your personal assets.

Not sure how many PMCs you've had bad experiences with, but we'll take exception to:"Then do a thorough research on tenant applicants (note: leaving this to a PM may be hazardous to your financial health)".BP seems to have more threads about screening mistakes by DIY landlords as opposed to PMCs.Now, if you'd have mentioned Maintenance, you'd get no argument from me:) Even the PMC industry acknowledges maintenance as one of the biggest challenges.Rereading my post, I kinda see how I sounded negative toward PMs.  

If you have access to someone who is ready to trust you with their asset, do right by the owner and go for it!

Additionally, I would suggest you run some financial calculations such as cash on cash return as well as any appreciation from the asset if/when you sell.

Unfortunately, unless you see the underlying financials as well as supporting data for those financials, you do not know whether there actually was cash from operations to pay your distribution or not. 

@Paul Bommarito, are you concerned with their financials?

Any guidance is appreciated and I know it's not tax nor financial advice, just your thoughts.

This is going to vary widely depending on the strategy and real estate asset class.

That being said, I don't have the information I would need to say for certain, but that sounds as if that's a high price for the asset you're considering to buy.