@John CastleberryCost seg has become a highly popular strategy but there are several blind spots to consider.

I feel like people lean more towards the possible cash flow and turn a blind eye to the risks and reality of owning a D property (not saying this one was) when it is 1,000 miles away and they only have to take phone calls from a third party about any issues. 

But they are the inexperienced passive investors, which is a blind leading the blind scenario—and then when/if something goes wrong these people sue, alleging you mislead them, didn’t disclose the risks, were not prepared to manage the complexities, and so on.  

In Ray Stevens words, "there's none so blind as he that will not see".

People take narrow crappy photos of dark rooms, blinds closed, with close-ups of who knows what because there WAY to close-up.   

Need new blinds, paint carpet etc. located in Ohio

If you understand the market you can position yourself in the path of growth, revitalization, and investment.If you don't... you could end up in a D Class area because you bought in a bad section of a zip code that someone blindly told you was "good". 

You sometimes go into the blind off of visual inspection alone because it's a good enough deal to absorb those types of costs. 

Your number will grow exponentially, not linearly and your blind spots are expenses that you are too frugal to manage today but will eat at a higher price tomorrow.The goal should be to eliminate expenses via consolidation, have multiple sources of income, and carry low risk(debt). 

Customizable funds like those provided by Avestor combine the best features of traditional blind funds and individual syndications, providing individuals the ability to pick and choose individuals deals and still get the benefits of the fund like a single K-1.