I wasn’t really considering the appreciation/depreciation aspect at all.  

What aspects of leasing are you referring to exactly?

I agree with what @Jaycee Greene said, having local connections accelerates all aspects of out of state investing.

Everyone thinks they can become a millionaire fast, and skip all the discipline aspects of it.   

For further learning, here are some solid bookkeeping books that can enhance your knowledge:"The Book on Managing Rental Properties" by Brandon Turner – This book covers not just the property management aspect but also has sections on bookkeeping and managing finances."

Promoters of these private equity investments: I more fully understand how the whole promote aspect of these businesses skews the view we get.

A key aspect that, annoyingly, the "cash-flow crowd" seems to skip past all but religiously. 

That's actually a great aspect of real estate, if things don't go as planned, wait it out!

My fear is that they might be more focused on the marketing aspects of finding investors through educating the average investor.

However, if you feel you don’t need a tax plan that complex, there are tax planners who specialize in working with real estate investors and can help you craft a tailored plan that’s more affordable.