The downside is illiquidity (you’re often locked in for 5–7 years) and the risk depends heavily on the operator you choose.Since you’re new and investing from Hawaii, I’d suggest a hybrid approach:Start with 1–2 SFRs to get comfortable owning physical real estate.Keep multifamily on your radar for cash flow and scale.Consider syndications only for a smaller slice of your portfolio (think “venture capital” money) until you’re confident with operators and the model.End of the day, the property type matters — but who you trust to manage the asset is the bigger factor, especially when you’re thousands of miles away.

Undertaking all tasks independently while managing the property for a year also yielded insights into:* Labor-intensive projects* The physical and emotional toll of renovations* Financial constraints* Project timelines and management* Interior design principles* Plumbing systems* Ventilation systems* Budgetary planningDid you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

If you can’t verify licensing, a physical office, and a real phone number, walk away.Trust your gut.

Reactive Problem-SolvingOperators know problems are inevitable — so they design response systems in advance.Maintenance Matrix: Document common issues (WiFi reset, HVAC troubleshooting, breaker panel locations) with photo guides stored in a digital binder accessible to staff/guests.On-Call Vendors: Build a bench of reliable local contractors (plumber, electrician, cleaner, handyman) with pre-negotiated response times.Tech Monitoring: Use smart sensors for noise, water leaks, and thermostats to prevent issues before they spiral.Communication SOPs: Response time targets (under 5 minutes for urgent issues, under 30 minutes for minor concerns).System: Crisis Playbook Binder — a digital + physical binder with scripts, vendor contacts, and SOPs for every common guest problem.6.

I kind of assume a management company so you dont have to physically be available? 

Don't go against physics. 

We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.

I'd also assume it matters how physically long the run for each will be.  

@Basit Siddiqi Yes, well that's what I'm doing now, I'm actually trying to strategize and create a system that works, however I think I am still learning how to virtually wholesale and some things such as gathering the end buyer and my seller seem like a bad idea if I am not able to physically be there.

Quote from @V.G Jason: This is incredibly hard to ask without knowing your income & overall savings level to sufficiently carry you through a physical asset investment.