Introduction

Many real estate investors start with single-family rentals, believing they’re building a passive income stream that will set them up for financial freedom. But what starts as a side investment quickly turns into a second job. The reality? Managing tenants, maintenance issues, and the unpredictable nature of real estate can become overwhelming. For many, the stress eventually outweighs the financial gains.

At Faris Capital Partners, we’ve spoken with countless investors who hit their breaking point. One investor, for example, reached burnout after acquiring 17 properties. At first, he could visit every property in a single day. But as his portfolio grew, it became a two- to three-day grind just to check in on all his assets. Instead of thinking about his returns, he started daydreaming about what life would look like if he didn’t own them.

The Myths of “Passive” Rental Income 

One of the biggest misconceptions about single-family rentals is that they’re truly passive. The reality? Managing tenants, dealing with repairs, and handling rent collection takes time and energy. Even with third-party property management, investors still have to oversee operations, deal with vacancies, and ensure their properties remain profitable.

A recent investor shared a nightmare scenario: A tenant trashed his home and stopped paying rent. Thanks to local eviction laws, it took over a year to remove them. By the time he regained control, he had spent over $50,000 on repairs—not to mention the stress of dealing with the situation. Stories like this aren’t rare. Bad tenants, legal challenges, and market downturns can quickly turn a rental portfolio into a massive headache.

How Syndication Investing Changes the Game

Syndication investing eliminates these headaches. Instead of personally managing properties, investors partner with experienced operators who handle everything—from acquisitions to renovations and ongoing management. The benefits?

> Truly Passive Income – Investors receive distributions without dealing with the day-to-day burdens of property management.
> Diversification & Scale – Larger multifamily assets reduce risk. A vacancy in a 100-unit building has a much smaller impact than a vacancy in a single-family home.
> Economies of Scale – Syndications allow for bulk purchasing of materials, in-house management, and professional oversight that individual investors simply can’t match.

For example, at Faris Capital Partners, we renovate units for significantly less than the average single-family investor due to our ability to buy materials in bulk and hire skilled tradespeople at scale. These efficiencies maximize returns while reducing risk.

The Mindset Shift: Letting Go of Control

One of the biggest hurdles for investors making the transition is giving up control. With single-family rentals, you make every decision. In syndications, you trust an operator to execute the business plan. That’s why due diligence is critical. Before investing, research the operator, review their track record, and understand their approach.

A friend recently asked for advice on a deal with a new boutique hotel investment fund. The properties looked great on paper, but after digging deeper, we realized the CEO was young and lacked experience. My advice? Look beyond the marketing and examine the team running the business. Are they seasoned professionals with decades of experience, or are they a group of friends figuring it out as they go?

At Faris Capital Partners, our Senior VP of Asset Management, Georgia Pitrone, has over 20 years of experience. Our Senior VP of Acquisitions has 15+ years in the industry. We don’t just find great deals—we execute flawlessly to maximize investor returns.

Avoiding Common Mistakes

The biggest mistake investors make when moving from self-managed rentals to syndications is moving too fast. They see a promising return but fail to conduct proper due diligence. Instead of deeply understanding the business plan and the operators behind the deal, they invest based on a friend’s recommendation or slick marketing materials.

How to avoid this mistake? Ask questions. Then ask more questions. Review past deals. Understand the risks. And make sure you’re working with an operator who has a proven track record of delivering results.

Time to Ditch the Stress?

If you’re tired of managing tenants, dealing with maintenance calls, and feeling like your rentals are running you instead of the other way around, it may be time to explore syndication investing.

At Faris Capital Partners, we provide investors with access to high-performing multifamily assets that generate strong returns—without the hassle of self-management. If you’re ready to learn more, let’s have a conversation.

👉 Book a call with our team today and take the first step toward true passive income.