The only advantage to this approach is to use the retirement funds without incurring taxes right now (ie UBIT), so compounding.

Since this is a long-term investment, it’s still important to prioritize areas with strong population growth and a healthy job market—both are great indicators of long-term potential.

It spreads their risk.In regard to market, there's a couple of different approaches my clients take:1.)

Developing that trust with someone you don't know may seem like a challenge, but if you approach it correctly, you should be able to achieve a pretty solid foundation of trust.The best way is to talk to others who have had an experience investing with the sponsor already.

I’m interested in learning about buying and holding long term rental properties.But I’m in a really messed up situation right now and looking for suggestions what would be the best approach to my situation in order to scale quickly. 

Are there any tax or management benefits to this approach?

Kudos to him for doing it, but his rules and his dogmatic approach is also the same thing that made Open Door Capital a horrible venture because they skip over being pragmatic.

I’d challenge you to go approach any sponsor and and ask them what percent of the deal they’d take.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

In addition to everything else, I think it's just a cool azz wealth building approach.