Further, as the larger funds found out there is more than one way to make a buck and they would rather go into lending then go down the grade spectrum to these type of properties. 

Passive investing vs active investing is not an absolute, it is a spectrum across which each investor must determine where they want to be, and what return and risk they will accept.  

I am in the middle of the age spectrum and still looking for the right 1st property.

If you don't, well... they may think you're just window shopping.We know our criteria pretty well, albeit a wide spectrum of interests.

The fundamentals you describe are good - I always plan on the lower end of the spectrum for rents. 

Nashville ranks among MPF Research’s favored apartment markets for the long term, but so much new supply in a single year could make 2016’s leasing environment at the top end of the product spectrum comparatively tough.Gino

There are  both ends of the spectrum.

@ Matt Smith : Dave got it right, 1031 exchange main concern is that is a real estate to real estate transaction with being able to have a very large spectrum what you can change it with.

The average Real Estate Investor is more likely interested in 4 to 10 units, at best.Interesting to know what they are offering out there though, on the higher end of the spectrum.

I realize that is a broad spectrum however it may be possible to find something with an opportunity to upgrade and ivory orate additional units to increase cash flow.