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. 

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

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 saw a story the other day where squatters broke into a house while the owners were home and claimed ownership.

When you start reading about this and searching the internet one thing I find is true... there are many LLC formation services that claim to do a bunch of stuff, several of them sell expensive "education" packages which just get a foot in the door to sell more services, and other do-it-yourselfers (legal zoom)ut.  

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...

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?

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

Taxes are fairly high so that should be taken into consideration.