Frank and Dave overall did a good job on this and give you a great model for conducting due diligence.

However, the above rules don't affect the determination of whether a taxpayer materially participates with respect to any interest in a limited partnership as a limited partner. 15 Moreover, the election to aggregate all rental real estate interests isn't intended to alter the rules relating to the material participation of a limited partner. 16 RIA observation: In other words, the fact that a real estate professional's rental real estate activities (whether aggregated or not), conducted through limited partnership interests, aren't automatically treated as passive activities, under the rules explained at ¶ M-5161 et seq., doesn't mean that those activities are automatically treated as non-passive.

Of course, you'll need to know how to conduct your due diligence on your coach so you're not paying a pretender.

However, I know that sometimes states require that business conducted (rent from tenants, in this case) in their state needs to run through an LLC that's been registered in that state.

COMPANY shall conduct paid screening services to verify applicant information.

The powers that be over the past 60 years have created a lawless waste land - I'm conducting business within the environment they created. 

Investors must conduct thorough due diligence to ensure alignment.Different from Rental Properties: Syndication investing requires a shift in mindset from actively managing rental properties to trusting syndicators' expertise and building relationships within the syndication community.Lack of Operational Control: Passive investors don't have control over operational decisions, such as whether to invest more money into a project nearing completion.Prerequisites for Participation: Contrary to common misconceptions, not all syndications require accredited investor status.

By leveraging their experience, property managers can quickly identify potential fraud and take appropriate action.Regular Property Inspections:Property managers play a crucial role in maintaining the integrity of rental properties by conducting regular inspections.

Another useful step is to conduct an energy audit of your home, which many utility companies offer.

I would also buy and enforce the code book that your jurisdiction uses when conducting inspections to the project’s trades.