The net result on the new property should yield a small paper loss for the tax return thus lowering my overall tax exposure and shielding the IRA withdrawal from income tax. 

I don't know if that's necessary, because one could get lost in such a big firm, but it defiantly puts a lot of things in perspective, and it gives you exposure to people who have been in whatever field you are looking into, with tons of experience.

With that tenant placement comes our eviction protection and lease break protection.Tenant Placement - With Great Jones tenant placement is a hassle of the past we take professional photos and get your properties maximum exposure; posting your units on 50+ websites including our own.

Another concern is exposure to risk related to him claiming mold in apartment.

That is why you want to "limit" your exposure by placing them into separate legal entities/compartments.

Setting up 1 LLC per property can actually increase your risk exposure.  

R there for exposure.   

I agree for the passive investor it can make sense to pay par or near par if the return is solid and the exposure is low.I get the appeal of avoiding Dodd Frank issues when dealing with investors as payers rather than owner occupied.

I am currently a Finance Executive at a Fortune 500 company, so I get numbers...now I just need to get some real world exposure to investment Real Estate and the local market.   

Any one with experience on how to best handle this; I think we have exposure by letting them in to remove it unsupervised, I do not feel it is in our best interest to be there supervising, we are looking into retaining an off duty law enforcement officer (pending clearing it with their department as extra duty due to insurance, etc.).