I’m in CA and looking at buying at my first tax auction.

Insurance may be 1.25-1.5% of the value of the house. taxes are low.On the operating cost side, electricity may cost double what you are used to.Just my thoughts. 

If you worked with a quality firm, they should be able to assist you with questions about the mechanics of moving funds around.The bottom line is that if all accounts are held in the name of the LLC and associated with the LLC tax ID, they are interchangeable - kind of like different drawers in the same desk.If the relationship with Stessa is in the name of the IRA owned LLC, you should be fine. 

I have been looking into tax deed real estate particularly in California; I live in Los Angeles.What has been people's experience with dealing with the dwellers/owners/renters of these tax deed properties?

People are still buying the RE because of the other benefits such as value ad upside, leverage, tax benefits, etc.

https://www.biggerpockets.com/forums/51-tax-legal-issues-con...

How do the tax benefits the syndication provides LPs impact the return? 

Does that have a positive or negative tax implication?

We have a tenant in process- my property manager is telling me that he uses Turbo Tax and the lease he generates only requires his signature and the tenants.

You will need to work with a tax professional to analyze your current tax situation (income, deductions, activities, etc.) as well as projected income from the fix and flip business.The benefits have to outweigh the costs (payroll costs, additional tax returns, more stringent reporting and compliance requirements, etc.).One important note - an S Corp is not an entity; it is a tax election.