Your average General Partner/Sponsor will raise 90% of the required equity through a limited partner to buy a $10 million dollar apartment building.

A professional manager will:1) Limit the risk of lawsuits and risk on tenant safety2) Perform home turns between tenants quicker than you can3) Screen tenants with advanced knowledge on Fair Housing Laws, identity theft, and filtering false references4) Be able to monitor and handle scams5) Provide you with the quickest eviction process if needed6) Have problem solving skills, so that most days you don't even know there was an issue because it resolved with little or no involvement from you.7) Have resources that include eviction attorney, repairs, cleaners, appliance repair, screening companies, mortgage properties, emergency line coverage. 

So I would suggest if you decide on Southern Arizona, to limit your drive to LA as much as possible.

The amount you listed at $4300 should be deductible, whether you're filing jointly or separately as you're under the limit for both for 2021 tax guidelines- $10K filing jointly and $5K filing separately. 

That being said, you might want to consider living in it for 2 years to qualify for hte sec121 exclusion, as limited as that timeframe might be.That all being said, its really tough to give you answer. 

I also have a limit to avoid them staying at a $150 hotel when a $65 hotel will suffice.

That was a limiting belief.

There are 4 parts to every real estate syndication (group investment).1️⃣ The Deal2️⃣ Financing3️⃣ Capital 4️⃣ ManagementThe LPs (limited partners) are passive investors and want to put their money to work by investing in safe, cash flowing assets like apartments, but may not have the time, expertise, or desire to go buy an apartment community by themselves.

I can have parents visiting me and living on 2FL) or leave it empty, would I be able to exclude all the profit from capital gains tax if it's within the limit (250,000)? 

Currently limited market & properties, but interesting concept as they expand.