Because, the exchange purpose is to select property that will generate me income, correct?

The numbers are usually averaged out from peak cycles and comps are hand selected to make the place look like it’s worth more than it is.

Combine that with selection bias and you have a real recipe for disaster.   

Didn't require inspection for 1st 3 months but required an Insurance co selected inspector for a renewal when I didn't finish at the 3 month mark.

A buyer can select to check zoning, or anything else that is a concern as part of "inspections".

I can't say why this area was selected, but politics may be at play? 

But a cautious investor that picks and chooses may be able to find one (or maybe 2) of the funds at FundRise that would work with their portfolio (as part of a diversified selection across best in class offerings from numerous sponsors).However, my personal opinion is that you should take a step back and think about what you are proposing (regardless of whether it's Fundrise or another fund).

Here are some recommendations for you:Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/usersSet up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsRead Beginner’s Guide: http://www.biggerpockets.com/real-estate-investingIf you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box.

It can make it easier if things become antagonistic.I'd say, most problems in this business are caused by poor tenant selection, so I strongly recommend researching here on Bigger Pockets about the various methods used for tenant screening.

Once the disposable income starts to dry up again in the next downturn, that same family member will be amazed at the amount of selection he/she has to choose from in rentals.