LLC in the state of operating?

In my opinion, even if you partner with a local PM company or turnkey operator your returns will drop significantly.

Gita,At least the way I prefer to do things is to only run accrual based accounting activity on my day to day operations.

On a commercial asset the value is directly based on the NOI (net operating income).

Over time, rents may increase, improving your cash flow, and you’ll gain equity and valuable experience managing tenants and property operations.

Managing the property yourself can save money, teach you the ropes, and give you firsthand experience dealing with tenants and operations.

More than likely the asset will in a location where cap ex & management/operational costs are disproportionately higher and therefore your expense ratio will also have to be adjusted to a higher number.  

Sounds he’s not interested in going through the rent up stage and being an operator.

I do not know PL too much but I know it is the most popular for small unit count operators. 

This approach will help preserve your operating capital.