This could be real estate experience obviously, military experience, job promotions, charitable organizations, etc. 

So the purpose of an LLC is liability protection.

I understand the limits applied by Fannie Mae, but just for diversification purposes would it be wise to start looking at a different bank?

Hi @Frank LaSpisa, The four member LLC is likely treated as a partnership for tax purposes. 

What is the purpose of buying them in all different cities?

Wait, are you suggesting there are unintended (or maybe intended but not promoted) consequences of government action?

If the cash on cash return is the same for 2 properties on the market, but one needs rehab and the other does not, which is better for tax purposes (deductions, depreciation)? 

An S-Corp would probably be better for tax purposes.

The purpose of proof of funds is to identify and eliminate dealing with people doing exactly what your doing.

In addition, just because items are depreciated for tax purpose over 27.5 years does not imply a life span of 27.5 years any more than replacing a water heater depreciated over 27.5 years implies the water heater has a 27.5 year expected life span.