The downside is this restricts me to one location and one market for both buying and renting.

The main downside I see to self-insuring is that you're susceptible to catastrophic claims.

Assess your comfort level with the potential downsides, such as prolonged negative cash flow or slower-than-expected appreciation.

I will limit my upside in exchange for limiting my downside, I don't want unlimited liability and willing to cap my potential for that option.

Stay the course and protect the downside.

Only down side is we are an hour further to skiing from Denver metro for day trips.  

The percentages are set over the amount they contributed , in the hopes to limit downside since they do retain liens against the properties.

No expensive CPA or attorney fees required, and you have certainly shown yourself both articulate and energetic in defending your views.The downside, of course, is that you have then popped up on the IRS radar. 

But, there are a lot of similarities and you can get some idea as to the potential downside and I totally agree with @Victor Saumarez that there is valuing in looking at them.  

Downside of that is you're exposed to the volatility of the stock market.The next thing I'm going to research are syndicated commercial deals, it seems like with the right network of sponsors it should be feasible to achieve double digit returns in a completely passive way.If/when there will be a market correction, I will be looking into buying SFR in my backyard (Northern CA) so I can assemble my team through BP references and always be within driving distance in case something happens and I have to manage my own investment.