I suspect that is due the psychological aspect in the appearance of it being cheaper in rent, because it's all in the same  area/complex. 

I'm struggling to understand some aspects of your response, but it provides some things to think about.

Less Desirable Areas: Are there neighborhoods we should avoid or areas where BRRRR might be less effective?

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

Yeah, bet many didn't think of that aspect. 

If I were in your shoes based on what you told us, I'd probably avoid hard money loans right now.

Do you need to refinance quickly to avoid a balloon payment or other financial pressure?

The aspects that would make me look very hard are: 1) how do I ever actually get my $$ back out of the UPREIT?

Make sure to speak with the Title/Escrow officer directly to verify their wiring instructions to avoid being a victim of wire fraud.6. 

I think this applies in all aspects (fitness, relationships, career, etc.).