Single Family Homes v. Syndication

[John P.]

I have a number of single family homes. I have sold a few and 1031'd the money into DSTs. I don't love those for a variety of reasons. I have learned recently that one can 1031 into many syndications. This is appealing as the syndications tend to, at least on paper, pay out much better than DSTs... while still giving me what I want which is mailbox money. I am curious why would one not do this? For example let's say I have a house worth $1m only producing $5k a month in gross rent. I could 1031 that into a syndication with a preferred rate of 8% let's say. Downside? I realize there is risk with a syndication but is the risk really that much greater than a SFH? Curious what all you experts have to say!