These tend to have less management headache but still have strong returns and tax benefits. 

The benefit is significantly less red tape compared to working with your traditional local banks who also do new construction financing.

I'm a local real estate broker, investor, and manager (100+ rentals, mostly Airbnb/STR and multifamily).House hacking is a tried-and-true method and in Sacramento you can produce some meaningful income while enjoying the appreciation and tax benefits of owning real estate.

Where is the benefit to the end buyer here? 

I see benefit to having accountability partners, and coaches, but have had a difficult time finding a successful group.

Its a very poor situation for the original owner to be on the mortgage for years and years without the benefits of ownership and the control.  

Also, there’s much to delve into on of those scenarios, like what type of cashflow or investment do you want, etc. residential, multi-res, small multi-res, commercial, industrial, etc.There seems to be fewer deals around these days and this typically benefits the more experienced and skilled investors but there are always multiple investors that get “tripped-up” in these markets due to them relying on recent “fortunate” market circumstances only to realize the markets cycle and they weren’t prepared or didn’t underwrite properly to account for unforeseen potential.There are more considerations, but this is a start.

The homeowner has direct title, can sell at any time and gets 100% of the appreciation and tax benefits on these houses.

When investing with them you get almost no tax benefits and usually get crappy management. 

Starting sooner rather than later allows you to benefit from long-term appreciation, build equity, and gain hands-on experience, even with a smaller property.