I think you should start by understanding what it is your investors want out of the deal, analyze how the returns compare to traditional investments, and then see where you fit into this deal. 

There's just so much wiggle room doing this, especially since you're dealing with a family member who completely understands the finances of the park. 

According to our understanding:1) California does not recognize REP status, but we could claim it on our federal taxes, is this correct ?

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.DM us if you’d like to discuss this logical approach in greater detail!

I don't understand your point? 

As we all know, the standard way BP says to calculate cash flow actually leads investors away form long-term opportunity and leaves a lot of investors on the sidelines because they don't understand IRR and the multi layered dynamics of investing long-term.  

But it would be good if you understand how this is done just for your education etc.  

There are a lot of ways to crash and burn, so increasing the odds of succeeding long term should be your highest priority. you can always sell your local assets once you're comfortable managing rentals and ready for a market that better-suits your criteria. btw, kudos for being self-aware of your limitations.

It's just a pass-through entity so the income would flow on to your personal and you would pay taxes based the tax bracket you fall in for you personal income (from my understanding).

Understanding them deeply.