Take the candidate(s) that are the best qualified and best meet your screening requirements.A coke dealer could possibly pay a few years upfront rent...but do you want to rent to them just based on that !!

Also ALL dealer properties don't qualify, that would include flips, wholesale deals, builder properties etc.If you bought a property today and 1031ed it tomorrow, the argument could be made that the property was NOT an investment property. 

The IRS will look at ‘investment intent’ and will call a taxpayer quickly flipping property a ‘dealer’ vs. an ‘investor’.Best bet is to consult with your tax advisor

With a Lonnie Dealer I have to worry about constant tenant turnover and as a result have to be involved in the screening to make sure they meet my standards (as Jay mentioned) - in line with the other tenants.  

You must be able to vet property to make sure its ACTUALLY a deal.REO wholesale is similar to private dealer.

If purchasing from a dealer or bank (reo) type auction then by all means there may be something of value to be purchased.

I believe you've cited sections beforeThis is funny stuff ... kind of a kin to a drug dealer asking if they should open up a LLC or S corp to protect their business.

I am also a cabinet dealer for a Canadian Manufacturer as well as have several accounts set up for materials needed for renovations (at wholesale prices).

Funds lend themselves to steady advertising through new crowdfunding techniques while syndicated offerings really need to be coupled with broker-dealer-like marketing techniques that potentially have higher investor acquisition costsThere are many other things to consider, but these are some other items you should check into.  

You can buy a used refrigerator for $300 from facebook yardsale pages or a local used dealer.