What are the pros and cons of each method?

While you may get a 199A deduction, you are paying a high tax rate.If we are talking about REIT's listed on an exchange, there are additional overhead costs as you mentioned - You have to get audited financial statements and also comply with certain SEC laws.

I think you're gonna see a lot of deals underwater trading before year end, with banks trying to clean up their balance sheets.5.5% with 25% down is a very competitive rate.

Cash is king and I see people make money on a deal and buy a car or spend it on their lifestyle - I did the opposite.

If for any reason, the Prospective Tenant(s) fail to complete all move-in requirements by the above listed date, the Landlord will return the property to public offering and the entire binder sum will be forfeited to the Landlord for expenses including, but not limited to, lost rent, holding costs, advertising costs, and marketing costs.

And when they finally do a deal they’ll leave you for the lowest cost option.2.

You don't have enough money for the deposit so how  do you plan to obtain the necessary funds to cover the closing costs? 

You can use that for marketing to get deals and then partner with people with money...

The best ones typically cost more than investors want to spend.  

Great photo of the RE Cost Seg team at ReConvene this week!