I prefer deals where the syndicator gets a fixed % of the profits. 

While it is possible and can be profitable to invest in small properties out of state, I don't think it's worth your time and effort.

Quote from @Logan Williams: As a former student at the U of A, big rival games, homecoming, and greek life family weekends are a huge influx of people looking for lodging, with only a few hotels in close proximity to the University, STR's that are attractive can be few and far between.

If they talk about "halting distributions" to investors to focus on future business growth and profitability, what is their actual business plan?

There are companies who buy properties and flip them for large profits each month.

Profitable and stable are two words that have a negative correlation. 

If it pencils to a 25 to 50% profit or COC don't do it.8.  

Many of these were lost in tax sales, and the ones that they got re-performing underwrote loan mods at low single digit interest rates during ZIRP and could not resell them at a profit once interest rates were hiked.

However, it increases costs and administrative work, like filing fees and bookkeeping.Tax-wise, LLCs are pass-through entities or disregarded entities, so profits and losses flow to your personal return, but managing multiple LLCs complicates filings.

If you do buy a pre foreclosure and follow all the rules and sell within 36 months any profit 80% has to go back to the original owner  who was in foreclosure.Since I made living doing foreclosure rescue prior to this . the new laws removed that activity from my business..