They will be much more sophisticated then the SFR crowd. 

I realize these are typically sophisticated owners that know exactly what their properties are worth, and know when they want to sell.  

I'm closing on a duplex next week and it's been very easy because my CPA runs all my "payroll" to myself for my S Corp so I have all the W2s I need to qualify for conventional financing.  

I can compete on some stuff simply because I'm more sophisticated and can see and do things with a piece they cannot.

There is a full time onsite supervisor and full time seasonal staff.The Lake is municipally zoned.My partner owns three marinas, I'm the business operations part.Insurance is $18,000 per year, with all expenses, including insurance, taxes, payroll, HOA, legal, etc.

My services are in high demand as I run my business like a professional.What a sophisticated agent would have done would be to contact the owner & see if they were paying commissions prior to showing the home.

The non-sophisticated owners in these small towns are very likely to have well below market rents, management and expense inefficiency, no website, no advertising, no additional profit centers.

starting to work its way into the Consumer Payroll sector. 

There is a lesson in here with for the bright young men & women who are today being brainwashed on YouTube and other forums to detest and shun higher education and professional 9 - 5 jobs by “gurus” who obviously don’t want too many smart sophisticated people around on this planet so they can sell their generic advice for a fat fee.

And a 506(b) syndication is a great alternative because it permits up to 35 sophisticated investors but I cannot rely on my prior advertisement efforts.