Maybe syndications but some of them aren't doing well and if they don't know how to vet the operator, seems very risky. 

which entity claimed the operating deductions and which entity claimed the depreciation?  

It simply states that 50% of the annual income will be taken up by operating expenses.

Bottom line, if you're operating as a business you should be keeping business and personal completely separate.

Partner with a friend to protect both interests, create an Operating Agreement, and focus on saving and preparing for the down payment and reserves.

I typically operate within the residential space and have a few rentals.

These asset managers operate the entire property on behalf of the investors.  

I noticed you are a lender who operates in my state as well, if you have some time available I think I would greatly benefit from learning what I can be doing to increase my chances of securing a loan and what lenders look for in potential clients. 

The borrower has a SFR, the are renting out to a tenant, who is running a Adult Family home/ Hospice operation.

Have you considered the potential of utilizing the "asset island" method for primary ownership of properties, and than via NNN master lease to individual operating LLC's for business monetization use?