That way you actually own the property and can take full advantage of the tax benefits.- Tom

If...after a year or two you have observed what they do, how they do it and can see a benefit to doing the management yourself to save the money...then maybe bring it in. 

@Linda Weygant my understanding was that properties purchased with 401k funds cannot benefit from depreciation, because the earnings from the 401k are not taxable.

If any of you have stories that you have had to bounce back from that you think would benefit the newer members please feel free to share. 

I think a great way to begin is to start learning everything you can and to start with cash or access to cash and then gain experience and credibility.  

While a similar concept, syndications add the tax benefits of being a partial property owner as well as offers a lower fee structure.

@Omar Khan The sponsors I invest with are selling (or refinancing and returning capital) in 3-10 years because (1) many of their investors want their capital back (2) it maximizes the IRR and (3) it maximizes the benefit of cost segregation.I'm a buy and hold investor in my direct portfolio but I'm fine with sponsors flipping properties in 3-5 years in my passive portfolio. 

I believe its currently around 3%; of course the tax benefits of this investment is nice as well. 

Just looking to gain more information, resources, and connections through this process!

Can a seller, that owns a property outright, seller finance a property, and still get the tax benefit of a 1031 exchange?