If you already have that where you live, why put those profits at risk?

Sometimes lawyers such as your former partner has representation with like to pursue things just to make a point for whatever reason.

It's not that challenging to get above a 10% return in real estate with all of the profit levers (cash flow, appreciation, mortgage paydown, tax benefits, leverage)?

If syndicator is building reserves for the first year of ownership, for instance, and not paying distributions, AND recognizes rental profit, you will have a larger tax bill that year, since you "made money" in the IRS's eyes, even though you did not receive any cashflow from your syndicator.On a more general note, a preferred return does not mean you will get that amount of cash flow each year.  

There is only risk/profit exposure calculous.

However as you correctly point out this is far more risky and or its risk capital compared to buying a income property.. but the reward can be strati-spherically higher .. not just a little bit but it can be life changing profits on some of these deals.

I too believe that economies of scale will will give us more bang for our buck, but since MTR data is fairly new, it was also difficult to analyze the profit potential for a new 4plex.

Following the shiny object, throwing money at a market you don't know well, and blindly trusting strangers that have a clear profit motive put you in a poor position to succeed regardless of where you choose to invest.

While not impossible, you'll be paying a much higher interest rate for the loan than with 20%+ down and also you're likely paying some points or splitting the profit if for resale. 

My purpose behind my decision to pursue REI is to gain financial freedom for wife and I, my future family as well as have the ability to make sure my parents are well taken care of once they reach the retirement age.If I had to label myself I’d want to be known as an open minded rental investor for all long term, mid term and short term investing, with the occasional flip for quicker capitol to put back into another rental.