COC returns for the properties in the above states were all in the 20 percentile with one at 42%.

Linenspa makes a good one - https://www.amazon.com/Linenspa-Infused-Memory-Mattress-Topp...Plus the ever reliable Zinus Green Tea.

The Partnership LLC would need to have strong language in its Operating Agreement for asset protection as well as outlining return on capital.

Syndicators do this because most passive investors are not sophisticated enough to realize the "security" of the preferred return means they usually are giving up the potential for massive returns if the deal does well.This next comment would apply for all syndication.  

These are annualized returns that can be compared to stock market returns so that you make sure you're getting paid a premium on investing in real estate over just dumping money into an index fund.For your deal, you'd need to negotiate the sale price down to around $142k to get that kind of return.Why is you Sensitivity Analysis based on a purchase price of $194,900?

Unleveraged significantly impacts the return from appreciation.   

The IRS only knows what tax return reports the activity of the property. 

Quote from @Basit Siddiqi: I think there is a sliding scale when it comes to investing / business.If you are a 100% investor(in syndication or buying in A / B Class neighbhorhoods and using a PM Company), your returns will be on the lower end.if you incorporate some 'business activity' to the investment(Self-managing rentals, STR, rental arbitrage, etc) you may get a higher return but at a cost of putting more time.The question is is the added time worth the extra money you are getting?

If there's no rehab to be done to increase value and I can't raise rents, odds are very good that this investment is going to yield mediocre returns at best.

Leverage magnifies return.3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.