We arranged our fund to avoid UDFI/UBIT and we believe its been a game changer for many to not have to deal with the tax consequences. 

There are tricks to the trade with installing them that have a large impact on the long term durability. 

What might be some consequences of this?

@Mohammed Rahman there is always a trade off for everything.

The highest ROI comes at 4 beds and up (I used to have all small ones and traded up for bigger ones).And the less sets of roofs, HVACS, plumbing, etc you have to manage, the more efficient your business.The flip side of that is the “eggs in one basket” argument, which is also valid.

You want an accountant that can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.Good luck and let me know if you have any questions.

But also keep in mind, those higher returns, especially in today's market, have trade offs.

A lot of developers treat their info like trade secrets... which I understand.... it just makes getting hands on it that much tougher. 

What are MFR cap rates currently trading at in the Knoxville, TN market?

Because I refuse to invest in countries where foreigners are treated as second class, which could have dire consequences if I ever have to go to court for anything.Costa Rica is a different animal, where foreigners are treated equally and are allowed to own property freehold, which is the standard way of detention.