The issue with this business model is these tenants are not easy to find and the less desirable the neighborhood and the lower the price range becomes very difficult to find a suitable tenant.

Do your homework here, take some time to understand the different business models that exist and ask all the questions you have along the way.

People doing 10+ deals a year4-6 peoplePeople that want to be open and share best practices – a diverse group of investorsPeople willing to provide constructive feedbackAn initial call for everyone to explain their business model – what you are doing, what you are looking for, etc.Once a month organized calls (Skype or Google) with an agendaA shared group (probably on Facebook, Google drive) where we can share ideas outside of our meeting timesCommunication and accountability outside of the once/month meetingThis is an evolving thing and I am open to best practices and ideas others might have.

I think there are many valuable lessons in here if they can be separated out and gleaned from this. 1 major thing is that this is your your business and ultimately your model will succeed or fail based on the business model you have and the people on your team. 

If they do not have any then there is your answer  Just because a company can find you a good deal does not mean that they can get you the monthly return year after year on that property Always remember you own four walls and a roof ,they owned the business system it’s operating inside of that to give you the actual return that it was promised and that’s easier said than done if they don’t have correct policies procedures in structure Always make sure that your business model aligns with theirs to make sure that they are going to help you reach your ultimate goals well if they cannot have that conversation with you then maybe they were the wrong team to leverage your properties with

The value-add model allows us control in either increasing revenues or streamlining expenses.  

I had talked to them myself they had offices in PHX  and I had a complicated model I was doing at the time it was 2010 capital was frozen.. and they were just too quick to approve me all I had to do was send in the 10k to get to the next level..

@Sam hate to admit it, but i been using same model for 10 years. i purchase 2-4 unit buildings in need of work with low rents and bad management. i raise rents to market value deal with turn over and usually sell to a bay area investor who thinks we are all rookies in the valley. :)

Was it the location, rents too high for business model, bad operator, bad ingredients and menu, or a combination?

I am an aspiring real estate investor and am currently looking for connections to to help understand the market around Little Rock.