There’s less appreciation potential unless the investor repositions the property and improves operations.

You can have all of the benefits of Trevor's viewpoint without assuming all of the risk.An LLC is litigation protection from suits not covered by insurance (any alleged intentional fraud, gross negligence, health code violation, etc.)You want an LLC to hold the assets separate from yourself or the operations of the company.

I operate my own real estate brokerage business on Long Island and I have two people who want to get into the flipping business with me.  

Although I also think it's worth examining your mindset: instead of an action giving you a result you weren't hoping for being classed a "waste of time", just think of it as an intelligent way to make sure your operating at optimal efficiency.

In this aspect your ARE operating as a real estate agent and it is ILLEGAL. 

I operate under my business name of jify renovation.

The only other things that I would encourage you to think about, if you haven't already, is how you are going to manage and scale your operations.

I would also require much better than a 10CAP to deal with the homes, septics, and economies of scale.Based on current operations, I would place the NOI on lots at around $7,200 ($300 lot rent).  

For the past 8 years I have owned and operated a residential construction company.  

This is pertaining to a property management operation in Arizona and we need to know what kind of paperwork needs to be filled out on a yearly/monthly/one-time basis.