Plenty of new investors fail, go bankrupt, for the reasons you point out. 

It's a section 8 property and under renovation. it may not have met section 8 standards and they may even have a hard time renting it, that's probably why it has switched hands so many times. but it could also be the same owner, they go bankrupt, open a new co and sells it to their new co. and resetting the basis on the property. now his basis is less, sells and does not claim money he made.

They have so few assets and make so little money that the courts will not order wage garnishments so creditors just have to hope a) that the debtor improves their situation before the debt is past the statute of limitations if waiting to sue for a judgement or b) that the debtor doesn't bankrupt on a judgement if already awarded.

They all went bankrupt in the last recession

I dont know what my potential liability is if there is a large settlement ( does HOA have insurance themselves to cover most of it), what would happen if it bankrupted HOA?

@Frank Jiang, So, people who lose their jobs, go bankrupt due to medical expenses, die, etc. are "vultures"?

Both are hands off, but owning debt with personal guarantees and rights to foreclose provides a significant advantage to owning a share of a syndication in which the company itself could go bankrupt and your investment becomes greatly diminished if not destroyed altogether.     

I tell everyone, if I was 3 years older I would have started investing in real estate in the boom of 2004 and been bankrupt by 2008.

I don't want to bankrupt my husband, and I've already spent two incredibly long weeks in a so-called "skilled nursing facility".  

Went bankrupt?