An entity doesn't modify whether or not your "activity" rises to the level of a "trade or business" in the eyes of the IRS.This looks like a rather pertinent article to read: https://letstalkdirtsc.com/tag...

Short term rentals will be considered an active trade or business and as a result all of the income from such activity will be subject to Unrelated Business Income Tax. 2.

Here are the specs:-40 lots, I understand trailers are all owned by tenants-$350 per lot-10 acres-most homes are newer and well kept-outside city limits on well water-large central sewer plant-park is owner managed, his overhead is 25% but he is jack of all trades-owner told me he had appraisal within last few years and value was $1.5 million then-room for addition of at least 20 more lotsI have seen formulas online using a multipliers  of either 60 70.

You best be prepared to pay a premium to have those trade professionals sign-off on work they didn't install then.

You're going to wind up trading a fixed rate for a variable rate (equity lines come with variable rates) on the money. 

They should be able to pull some comps that will give you an idea of what rehabbed properties are trading for in your area.Hope this helps! 

The reality is that this is a strong seller's market and a lot of inventory is trading whether or not the numbers make sense.

In the future, we plan to build a secondary exchange on which these investents can trade such that investors can sell their stake before the property is sold.  

I don't like to bank on late fees but it's a necessary consequence.

Me personally I look for value add deals that are already performing that will allow me to increase the valuation so the property will trade at a higher multiple on the exit.