If there are late payments, change in ownership on deed with no continuity, etc... sure... then the risk factor is much much higher.The notion that investors must use conventional financing is far outdated as DSCR programs are not only equally competitive in costs to conventional, but have far greater exposure limits, if any. 

They know absolutely nothing and in conjunction with the generalize notion, they believe its easy.

Companies have many options when choosing where to establish new operations, and they're unlikely to select cities with high crime rates or declining population.The notion that buying cheap properties will enable lifelong financial independence is false.

.: Quote from @James Hamling: I absolutely hate Hate HATE this BS ridiculous notion popularized by various books, programs, gurus and what not that you just go ask enough, or in the right way, and someone is magically dumb enough to sell you a $300k FMV property for $200k..... 

Also, just like any other form of investing, these people ran in, with a notion it was passive and easy.

Why is it an accepted notion in USA that government get's to instruct Landlords for what there pricing is to be yet virtually everything else in life, the food you eat, the things you drink, the fuel you need to get to and from work, that can just run buck-wild because "it's the market"....... 

A stretch to say you are presenting a useful alternative.What truly triggered my response was the notion that it was proper for nursing home/assisted living affiliates to have a preferred network of investors, much less that they would use billing and time pressure to steer their prospective patients there.

Meanwhile, army's of seasoned investment bankers spend millions on a faster fiber-optic connection to NYSE because 1-millisecond shorter latency allows them to improve their trades by 0.01%.. but Johnny thinks he can outperform them all with his Robin Hood app by a factor of 1,000.The notion of investing 50k into real estate and growing it into an empire is a pipe dream, at least since after 2015.

@Amanda Gauthier my best advice is put the entire notion and thought of syndicating on the back burner, the faaaar back burner. 

One more thing - there's this vague notion that people go "full-time" into rental real estate investing.