I've never invested with them, but I know they have both Accredited and Sophisticated investor options.  

The only reason I could see that happening is if the buyer of that property was trying to take advantage of someone less sophisticated.

Sophisticated investors invest on cashflow where the rents exceed the mortgage plus expenses (and enough money to pay for professional property manage to do our dirty work).Sophisticated investors look at the Rent-to-Value Ratio and look for at least 1% or more to be able to cashflow after expenses.

Lastly, if you're ready to get sophisticated, I would recommend getting MB's SDA calculator to underwrite.

More sophisticated investors prefer this method over a distribution model.

What are some pitfalls you think less sophisticated investors should be aware of?

Today's property owners are more sophisticated.

This is exactly why you need a sophisticated accountant who specializes so you can avoid incorrect information like this. 

The assumption here is that your asset has a shelf life, and will need to be replaced (like machinery in a factory).

I then switched to Buildium so I could offer more services to my tenants and could keep everything in one place, but that become very time consuming as well due to the accounting sophistication.