-REO purchased during a very favorable time in the market (not favorable according to the naysayers of the time...).

So do us all a favor and get rid of him.

I'm going to invest in a 506b fund and I'm wondering.Is an income generating asset taxed more favorably when held inside an LLC?

Keep in mind that STR income will likely not count in your favor until you have tax returns to show it, versus a bank may consider lease income on a LTR.

Wyoming generally has some favorable foreclosure laws and I have seen folks also doing a contract for deed. 

I was figuring that putting in low offers may work in my favor if they are reject. 

About a year ago I had to do an eviction on one of my properties here in Southern Indiana, the judge issued a default judgement against this couple and in my favor of $5,400.

I'm favor of creating a new LLC partnership. 

It’s vacant land and it’s multiple sellers on the title (2 other brothers) Im planning on doing a sandwich lease and I already have the numbers favorable and she’s ready to give me a deposit!

True, they may throw off some dividends, but these are minimal in a broad-market index and, at best, relatable to a bond.Real estate investing is multi-dimensional while equities are primarily monolithic - in real estate investing you'll participate in the cashflow, appreciation, and equity growth that you mentioned in your post, while also benefiting from favorable tax treatment.