I have a partner that I have done several deals with and he is good with a fixed return on his investment.   

.: The first "strategy" I would teach you is how to leverage our money to increase your returns.

If not, I would highly recommend doing so!

However, real estate values (on a national average) have never gone down over a 10-year period. https://fred.stlouisfed.org/series/MSPUSHere is what I do:I live in San Diego, a high-appreciating market with a lot going for it economically and very little cash flow.

In a high-crime city, I suspect that's the case and why you weren't covered. 

I'm not a CPA but this is my understandingFor Federal return, the state of the property or the state where you live does not matter.You can write off up to $25,000 of passive losses against your active income if your AGI is below $100K. 

I feel yours is overpriced unless it's smack in the middle of downtown with high-end furnishing. 

I've been educating myself highly in REI before I decide to purchase my first investment property.

One of the biggest complaints with DSTs is the high cost/fees associated with them.

What can you offer in return?