After posting this, it is likely that people will criticize this model or say it is illegal.  

I'm not trying to be critical of your path, I'm just trying to see what and why you did what you did....and it's really hard to get accused of brokering without a license.

Tips, Advice, constructive criticism welcome :)

But be cautious, vetting the sponsors is critical because there are good ones and bad ones and it takes due diligence to figure out which is which.In addition to private offerings, other vehicles that fit your description are traded REITs, non-traded REITs and DSTs (typically used in 1031 exchanges).

Well...So much criticism here but honestly most of it, to me, simply shows that the poster(s) are just not familiar with the bay area reality.....So many points are just simply not accurate, to a point where I feel no need to counter...

I think a triage system is best.For example, if something critical occurs, like plumbing leak, you want to respond same day to mitigate damages. 

Capital expenses will come one way or the other and with these houses they are critical.

It's critical as an out of state investor to build a team that you trust to advise you.

I'm a huge finance if YNAB and think it has been critical in changing my finances over the last five years!

Having good partners is critical to my success.If the question is about executing one deal, I think there are some considerations to keep in mind when taking this approach.Depends of the size of the deal (# of units) and the loan amount.Being able to raise the entire equity required for a down payment and capital improvements is a good thing!