With all the measures they have, it's never been an issue to my knowledge and the neighbors would let me know in no uncertain terms, as they had a poorly managed STR in the neighborhood previously. 

My logic behind a area to hold is basically is in my zone of knowledge that means close in and in a  A-B area .BIG fish can have the whole USA in their  zone .Outside of my zone I am thinking flip it there are exceptions like all rules . 

@Don Konipol @Chris Seveney to my knowledge are current fund owners/managers and are very versed at the rules..

He is knowledgeable but he has no control over the GP.

Get started and look back on today in 5-10 years with all your new knowledge.

You are always helpful with your advice and knowledge here on BP.

This is the “over night” success that’s taken 20 years.2 - Superior uncommon knowledge, combined with experience and capital and a willingness to take a risk (speculate).  

If anyone who is knowledgeable, please chime in so I can relay such information to my friend so they can have proper step to follow.

I'm just hoping someone with actual knowledge of it can provide some information that offers an alternate explanation.

If you’re referring to the “newbies” with $10k to their name that watch a video by Pace and get excited and pay for joining, go out with their last $5k and do a sub to with a “desperate” homeowner without revealing all the possible consequences (because they are unaware of the consequences through lack of experience and lack of knowledge and or choose not to inform the seller) then I agree, it’s probably going to turn out badly for all concerned.If on the other hand you’re referring to a seasoned investor with excellent credit, significant cash reserves, who wants to add a property to their portfolio without going through loan qualifying, and can pay enough to give the seller “walking away” money because of the low existing interest rates and or, and is dealing with a informed seller, then I find nothing wrong or negative about the transaction.