Banks are hungry for loans, but only from a particular set of individuals/entities.

Of course your individual experience may vary and maybe you have a marketing and sales background so it is a good fit.

Stats are not in your favor but forget the stats as it all depends on the individual's drive, effort and processes. 

Though the buildings are attached, the guest rooms all have individual exterior entrances with no interior connection to the residence. 

All IRA-related transactions must be "arm's length", in other words, IRA can't get involved in any transaction with yourself, your immediate family members or any entities these individuals own or control. 

Truthfully horrified that this is an individual who wants to raise capital from others "to scale" after owning section 8 rentals for 2 years.

A zip code average of an area does not represent an individual property’s characteristics.

You also can sell individual lots instead of all together. 

Unique pieces are great for "Flair" and individuating your property but if it fits in a suitcase and isn't fixed to the wall or floor then it will not be long for your STR.

There's obviously quite a bit of diligence that comes after such as who the key principles are and their credentials/track record (both balance sheet and experience), the underlying real estate and thesis behind the investment & tax prep and audit procedures but as a general rule of thumb if the investor can't get past the first part which is understanding what they are investing in, passive investing is probably not for that individual.