The pitfalls of these kind of scenarios is generally proving to the IRS that the payment was for actual work done.

US stock market, aka MAG-7, have outperformed 12% to 9.5% with REITs in last 10 yrs and even more strongly in last 5 years at 15.7% to 10.3%, perhaps this will continue but the sp500 currently with a 34.4 Shiller PE, which is much higher than in October of 1929, and that wasn't the best time to start investing, please read the following 1 article and then the graphs/tables, There are also multiple academic studies at the European real estate research site EPRAREITs vs.

I study social and economic development on the side and that keeps me balanced.

I speak to people less than 20 years old who are just starting to save $ for their first deal and so many of them want to buy properties such as the one you are describing here.Despite case studies (and possibly demand) being scarce in your market, the #s don't lie!

The key holder explained that the gang has new initiates, who are trying to prove their worthiness.

"Banks are the place you go for money when you can prove that you don't need it."

Studies show salt air affects buildings up to 50 miles inland.   

You are trying to prove something because someone said no and all that will get you is debt in this particular case.

However it did lead me to deeply studying REI as a strategy.

So I study to find which properties are doing irrational amounts of revenue in the markets I am looking at and elsewhere to figure out what type of experience to create.