SFR vs Syndicates?

[Ryan Lauretta]

I an American living abroad looking to invest into real estate. My original plan is to invest 50% in a mix of syndicates - value add B/C class midwest, some commercial and 50% on SFR. When I looked at the track records of certain syndicates that offer a mix of assets and thus diversify your risk, I find CoC that range between 7-9%, and overall 5 year IRR of 15-18% after appreciation. Liquidity is an issue, but that's real estate. There is also no time commitment on my side with all on those. On the other side, I see SFRs which I would love to invest in - but the math just isn't working out for me from a risk/benefit perspective when comparing with sydndicates. To stabilize an SFR to generate those kinds of returns, there is a ton of work, learning curve, luck in everything from choosing a neighborhood, house, team - you all know better than me. The long distance part is doable, but its just another variable. While my heart is still pulling to do at least one SFR just to learn the business (only way is to get your hands dirty at some point), my mind keeps stopping me because of the numbers. But people are building wealth with SFRs, not investing in syndicates - what am I missing here?

I am in tech - and have a family with young kids.  Time is limited.  Right now, I get up at 5 -do two hours of research, and then try to find some time during the night.  Discipline and motivation are not issues for me, I just want to make I am not wasting my time, working hard with a small chance of achieving returns had I just gave someone else the cash to invest.  

I am at an intersection, would love people's advice here.