-JackI guess I was under the mistaken impression that you were trying to look at this with an open mind, but I think you likely came into it with a pre-conceived notion that you were looking for validation on. 

Passing the properties on to the next generation would be even more of a nightmare as now this would involve conceivably nine people.

I did not study a lick and made every conceivable mistake that a newbie investor/landlord could make.

Sorry if that’s a dumb question but I’ve never heard it answered before.I love the idea of a 4-plex because I could conceivably rent out two apartments while working on the other two, thereby still covering the mortgage and most expenses while I’m able to rehab at the same time.

There are several costs that are incurred by the GP until the deal closes, and they have to eat if it doesn't.That's the only possible conceived way I could see this being a legit thing and just a miscommunication, but if they're saying it's a fee it sounds like BS to me.

So you could conceivable be paying tax at whatever is higher - IL or AZ.

And while we'd love appreciation to always be there - It's entirely possible that in a long term hold with multiple refinances you could conceivably  sell in a must situation with no 1031 and not generate enough cash from the sale to pay the tax. 

Generally the rent that is requested is as high as can conceivably be justified for the area, including vacancy, management, maintenance and improvements, and it's basically expected to not be paid. 

Many of those same people who could never conceive of starting/owning/operating a business are quite happy in their career choices and content being tenants, employees, etc, rather than business owners, and there is nothing wrong with that. 

@Calvin SmithYou have received a ton of great feedback from others like @Hadar Orkibi and @Todd OlsonA lot of people have this pre-conceived notion that they must start small (aka SFH) prior to jumping into MFH.