There is a big disadvantage for selling the property as you age. 

There are advantages and disadvantages to every strategy and one size doesn't fit all.

But the disadvantage that you might be sick of managing properties in your 80s, so property management is a good choice.Buy properties in areas with good long-term prospects: growing population, diverse industries and economy.

Like you mentioned, both have their advantages and disadvantages, it just depends on how much control you want and what the cash on cash returns as well as overall ROI you expect on the property when you eventually sell...one thing I'll add to the advantage for real estate - assuming you can keep occupancy high and manage the property really well, you have a huge advantage when it comes to cash on cash return because essentially your mortgage is being paid for. 

both have tax advantages and disadvantages .    

This is what you would have:Down payment: $5,000Remaining balance: $45,000Principal and interest payment: $269.80Balloon balance due after 3 years: $43,237.75At the end of the 3 years, you'd either continue with the seller (if they allowed you to extend it) or you'd have to get traditional financing through a bank for the rest.The advantages to the seller are that they get to collect interest payments during those 3 years and that they might get a price that way that they otherwise couldn't (perhaps slightly higher but not by much).The disadvantages are that they have to trust the buyer to fulfill their obligation and that they will get the financing at the end.

However, the biggest disadvantage of investing locally: if it doesn't meet your goals, you have no other options. 

I always thought buying multiple homes in the same lot is a great idea as opposed to buying single family homes in independent locations in the same city as it helps management much easier especially as a live in landlords, just trying to better understand the disadvantages  

Mortgage is only $1400 with 4% rate, inflation is 3%Fast forward to 2023, same house is $1 mil ; principal paid is about $150-$80k, remaning mortgage is $120-$140k with 40-55% LTV.When I paid $1400 in 2023, it is not inflation adjusted, if it's inflation adjusted, I shall pay $2,000 instead.In US of A , with current mortgage process, the advantage is with the borrower, the disadvantage is with lender (precisely reason why BAC/SVB is falling because they are the holder of our notes).Now the following is still true in US of A:1. home price is still rising albeit slowing down2. fixed mortgage rate is still available and sometimes we could get the rate BELOW inflation rate3. actual Fed real rate compare to inflation is still zero.Now when people do leverage in mortgage, after 8-10 years, you could pay off one of the property, with the equity from other house.With cash you can't do that. 

For the OOS investor, they are at a disadvantage on each of these.