It is less administrative and lets a bad month or one time charge get absorbed by other months. 

I have been considering ways of generating passive income in the world of technology, I work full-time as a systems administrator, and I had never taken real estate investment seriously until my wife and I decided that we wanted to mov recently.

I'm about to graduate from college with a BS in Business Administration with an emphasis in Finance.

One option would be to take a personal loan from it, check with your plan administrator if you can do that.

I've noticed great involvement from both BP administrators and members.

Solo 401Ks do not need a third party administrator or custodian.

Also, it eliminates the extra costs (for one, lending) and administrative overhead. 

The lender's position would be taken over by the administrator or executor of his estate or the successor trustee if a trust owns the loan.

Once it gets above 10 units I think I will switch to having a PM since at that point I don't think I could handle all of the administrative tasks and lease-ups. 

You may even add an administrative fee of $25 to cover your cost of having to pass the charge on and track payment.