It wouldn’t surprise me however, as many of the fees I’ve seen associated with the program in question are ridiculously high (like $10k to set up an LLC when it should cost a small fraction of that, $250 for a promissory note while most title companies provide them for $50-80, $1k+ per file for a transaction coordinator’s services on a cash deal (typical cost is $200), etc.).

Seaside - 33 Cannon Beach - 13Keep in mind that a fraction of these properties are eligible for vacation rental permissions.Our current list counts roughly 15-20 properties that are currently utilized as vacation rentals for sale and another 15 or so that are eligible for a reliable permit. 

But, most importantly, you can receive a share of the net profits from cash flow and appreciation.The downside to the LLC structure is that you cannot accept 1031 funds into the LLC because units of an LLC are not like-kind property to real estate.To solve the problem of accepting 1031 investors, sponsors started accepting money from their investors and putting them on the deed as fractional fee title owners. 

Equal of better quality properties are often a fraction of the cost of a like-for-like property in the US in a like-for-like place, the operating costs are much lower, property taxes are almost 0 and you can oftentimes rent for higher prices.If that's wasn't good enough reason, diversification is the rule # 1 of a serious and smart investment strategy.

My average unit is more than double that price and my expenses are a fraction of what he estimates.

I think it rivals/exceeds BRRRR, but the projected return is a fraction of even a decent BRRRR and a good BRRRR produces infinite return

So, potentially 4-500 SFR homes and a fraction of that with optimal actual beach access and eligible for a short term rental permit.

Still, we are small time landlords (3 properties), and can’t afford to continue to pay all the expenses of the properties with only a small fraction of the rent coming in indefinitely.  

Majority of these states offer a very comfortable price range and at a fraction of the cost compared to CA.Depending on what you are looking to get into in terms or Single family, Condo, Townhome, 2-4 Unit Multifamily rentals.

Rise in Fractional Rental Property Investing5.