Rud, Syndication deals (and crowdfunding deals which are essentially syndications that are allowed to market over the Internet) can be set up in numerous different ways.So there isn't going to be one single answer for this.To answer your question, I am not an accountant and you should always consult with your own tax accountant before making any investment decision.

There could be opportunity for urban in-fill with tiny homes, and I know several folks researching that possibility.

DT Long Beach: beachy urban setting with smaller units 1bdr; close to tourist attractions, and thinking I can STR one unit; BUT high crime rate (90 percentile); properties are older but more attractiveIs it better to go into a slightly better neighborhood in boring Riverside or a more crime ridden area of cool kid Long Beach?

When you compare to cities you know think of Detroit as the old urban core.

There are just numerous variables and calculations you must analyze to check. 

Don't buy in the roughest neighborhood in the urban core.

It was an office building owned by a somewhat shaky business, but did have numerous long term roof leases for wireless providers.  

Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.Don't buy in the roughest neighborhood in the urban core.

I have purchased numerous courses.

Our portion out-of-pocket was the $3K deductible.I'm friends with numerous apartment owners.