For some investors, gaining exposure to the MHP asset class through a passive investment can be a better fit than acquiring a park themselves. 

No, it only means that you shared a good deal with others, mitigated your risk exposure, got your money back in a timely manner, put down less than you had to, and negotiated your butt off.P.S.

For the newspaper ads I'll use the Atlanta Journal Constitution, which gives me the widest exposure possible to people that are seeking a new home to buy.

This will affect your exposure and controlling the quality of the area and tenant base upon rehab.What's the condition of the units??

@Val Csontos Generally speaking, an IRA LLC will not be subject to taxation.Some states have franchise taxes that may apply, but these will generally be independent of income and in a fixed dollar range from about $175 - $800.Some activities of an IRA (whether or not in a LLC) can incur trust taxes for the IRA itself, including:The use of leverage creates exposure to Unrelated Debt Financed Income taxation (UDFI).  

In my opinion, the trade off to foregoing cash flow though is that it limits your options and creates more risk exposure.

we have 9 good investment properties in buffalo ny and are looking for advice to increase our exposure to out of town investors any ideas would be greatly appreciated

It is beneficial to hold assets and not distribute them until a future date, which reduces your personal exposure, but it delays the inevitable exposure to double taxation unless you spend it wisely.

Which matters...a lot.If you are the manager of your LLC, and you are a CA resident, the LLC is deemed doing business in CA and must file a CA 568 annually and pay the annual $800 CA LLC tax.If your partner is also a CA resident, he/she will have the same compliance obligation exposure for his/her LLC.And now, we're going to add a third LLC into the mix? 

You're right, a lot of the deals end up being 506c because you can get more exposure that way.