For someone that's not as conservative, or a different view on the cycle, they might have a different opinion than me on all of this.2) Sponsor quality check: (takes about 45 minutes per deal)I believe that a great sponsor can take an average looking deal and make it great, and that in mediocre sponsor can take a fantastic looking deal and make it bad (especially if there is a severe recession).

Experienced investor looking for new (quality) direct skip and cold calling companies

To reiterate, I don't need huge profit margins off these and I do want to offer quality rentals but they do need to make sense.  

By repositioning the property (like improving tenant quality or adding amenities), you can boost the NOI over time.

This combined with minimum footage for a bedroom means many lofts do not quality in CA as a bedroomDifferent states will have different requirements for what constitutes a bedroom.  

A nice but rental quality unit gets 1500-1650 regularly in that area depending on the size and finishes.

Are their listings detailed with good-quality photos?

In hindsight, this made sense as their responsiveness, listing quality (photos, description), and understanding of market rates were subpar.

This cushions potential value drops.Syndicator vetting: Only partner with syndicators who have a strong track record in different market conditions.Market and asset class knowledge: Understand market cycles and the specific real estate types (multifamily, industrial, etc.) you're investing in.Avoid chasing trends: Just because a market or asset is “hot” doesn’t mean it’s solid.You’re right that this approach doesn’t cap your upside, quality diversification can still generate huge returns while managing risk.Best regards,Drago

Be sure to take high-quality photos, and if possible, request utility records that confirm separate billing for four units.