There's easily higher cash flow in other markets, there's not enough industry diversification for my tastes, the city is 55% renters which makes for a large renter pool but not necessarily the highest quality of one, and I've just never seen it as a "desirable" market outside of 1-time casual vacations there.

I'm looking at a diversification play with other properties in Nashville area.

Nothing wrong with a little diversification. 

We are looking at it more as a diversification from the stock market investments, so we would accept a low ROI as long as it's cash flow positive, but we have not found anything that makes financial sense.Here are the numbers we are looking at:  $500k house with 4 or 5 bedrooms.

This type of exchange provides investors with a way of increasing liquidity and diversification of their real estate investments, while deferring very costly capital gains and depreciation recapture taxes that may result from the sale of properties.

All of these options require some kind of due diligence and action - but syndications seems to be the best option for lower risk, less active (especially after the investment) and diversification. 

That might be fine if you want the diversification.  

It is an excellent way to invest with a group of people and allows you to get into more deals for more diversification, it also effectively lowers the minimum investment amount for syndications as you are sharing it with others. 

I think diversification is best.  

Diversification of your assets.