Your points are precise, and show an obvious disregard for the investors by the sponsor.  

Out of curiosity, would any of your rentals be located in LMI communities in Memphis such as Orange Mound or New Chicago?

If they can find a gorgeous 3BR in a good location for $1550 nothing comes out of their pocket, why would they go to a crappy property for $1550.  

Location of accountant: some accountants will charge more if they’re in a higher priced locationGeneralist vs specialist: if you want someone real estate specific, it will likely cost more.

Make sure you’re clear on how financing works and what your monthly payments will look like.Property Condition: Assess the age of the property, maintenance history, and any potential repairs or upgrades that might be needed.Due Diligence: Work with professionals, like a home inspector and a trusted real estate agent, to ensure the property is sound and fits your investment goals.Analyze the Neighborhood: The location can make or break your investment.

ADUs seem to be really popular in California, depending on location. 

I’m not saying you have a bad deal, or I wouldn’t buy it if it was located somewhere warmer without income tax.

Hi there, I am not located in Chicago, although I did live there for 4 years at one time!

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

The risk of the business is on you and whether you have the expertise to pick the right asset, in the right location, and operate it properly.