In my research when I initially wondered the same questions about whether I should my properties in one or not (or in several), I came up with the conclusion that it's not the 100% asset protection most people think it is in a lot of cases.

Am I willing to lose these people as my friends if/when a deal goes south? 

That's why I always tell people out of state who want to invest in Milwaukee a remote BRRRR is a lot harder than you think! 

There are nice people in those areas that want nice places they just can't afford better neighborhoods.

Most people do not realize though that a bad review does not hurt a host like you very much.

Make sure you leave that new LLC as a disregarded entity, or if you bring investors on with you, make sure it’s taxed as a partnership (subject to Subchapter K).The only way to mitigate cap gains would be if the property appraised very close to its net tax basis.The other strategy at your disposal is to dissolve the S-Corp in the same year (though you really need to be in-line with your CPA on this one)… you should have more tax basis post- deemed sale, and that basis would help you achieve a capital loss on dissolution of your corporation.Talk to your CPA my friend!!

Are there industries in the area that will bring people and jobs? 

There is nothing wrong with that, but I think many people don't fully understand their reasoning for doing it.

Though I suppose many people would rather have new construction townhouses or a 3 or 4 story apartment project on the site.   

If you are a PML or Money Partner, what do you look for when someone brings you a "deal"?