Just the nature of the business....

I might say that most of those are going to be residential in nature as well. 

Human nature I guess..

But from what I've observed (and I'm sure you've seen too), only a few new investors, who are more analytical in nature, do this.One of the issues that I've seen again and again is new investors putting together a "spreadsheet" based on their limited understanding, that produces inaccurate or misleading numbers.

It seems to be a pretty natural evolution for many investors.

It is not retaliatory in nature also.Is it legal to raise rents on one property and not all of them?   

When you deliver on your promises and provide exceptional returns, investors naturally want to share the good news with others.

What ROI do you need to justify the liability and active nature of owning a rental property?

AZ is not prone to major natural disasters so investing there is less risky with regard to those types of setbacks.  

And on top of not disclosing the true nature of the transactions, the borrowers were unknowingly entered into 3rd party transactions, without knowledge, consent, or recourse.