I work with a handful of investor friendly lenders that don't require W2s or tax returns (lending is based on the property not the borrower) but am always exploring new avenues.

You will learn about property management, taxes. contract law, and people management. 

Not to mention I got to write off over $175k from my income taxes using a cost-segregation study.  

Thanks Your rental income (does not matter if long term or short term) of your schedule E is calculated using this form: https://content.enactmi.com/documents/calculators/Form1038.C...Your schedule C income will be averaged over the last two filed taxes returns.

I have a fund seeking to make section 8 investments on 4 or fewer unit properties in landlord and tax friendly states such as Nevada, Florida, South Dakota, Utah, and Tennessee. 

I'm curious on how best to structure this approach: Who owns what, who gets what, rental income & depreciation (all tax treatment).

My question is what is the best way to set up out LLC, and should we be taxed as an S-Corp? 

Don't beat them up, pay them well, on the schedule you agree upon.

Hard Money will fund 90% of the purchase price and 100% of the rehab on a draw schedule.

And you did this without paying any tax.