He seems a straight shooter and has a good track record.  

I'm not an attorney, but having them under a holding company LLC seems like a risk of having a judge rule that they are all part of the same company de facto, and liable for losses from others.

Either way seems like it would be cleaner to just buy a rental if your bet was on appreciation.

NoAirbnb rents seem marginal at best on this property for its value and you would have your housing expenses

And reading some threads here at BP's seems to confirm that. 

This is a separate issue from the step up basis but would seem to have significant financial implications for both parents and children. 

And the crazy thing is -- it only seems to have made you more interested.. 

But here's where I'm scratching my head: this REIG doesn't seem to have a proper name or a website I can check out.

The ones that seem to be meeting with success are targeting Raleigh and Durham properties with a good proximity to something in high demand (airport, university, downtown, hospital ...). 

Seems that everyone I talk to either absolutely loves it or says it's a total nightmare.