NACA is VERY slow, they did 2x appraisal and 2x inspection, asked to upgrade a bunch of stuff like random hand rails on 2nd floor stairs etc - marketing helped with digital floorplans, 3d tour > only held 1 open house and didnt receive that many offers.. surprising.

Surprised the EMD would be that much. 

You always need to leave enough in the piggy bank for unexpected repairs, etc…Keep this in mind with your deal search.

@Kevin Nolan  you should look at the Florence/Muscle Shoals MSA, I think you would be pleasantly surprised

I'm surprised you're on this forum if that's how you feel about STR.

The HVAC system failed unexpectedly, adding unforeseen costs.Lessons Learned:Thorough Inspections: Always include major systems in the initial scope.Contingency Budget: Set aside funds for unexpected repairs.Flexibility: Be ready to adapt plans quickly.These lessons highlighted the importance of thorough planning and flexibility in Partner Driven's real estate investments.

You make an great point, to keep stashing cash aside to prepare for the unavoidable "unexpected" costs of physical REI.

I know talking to them is a great way to do this, but I want it to be somewhat of a surprise.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

I find that surprising and wondering how that is possible.As someone with a full-time W2 job who is a limited partner in a real estate syndication with less than 1% share and does not satisfy any material particiapation criteria, I would have expected the loss to be passive.