They also said that anything within the walls of my unit would be on me... such as broken sink handle, refrigerator, etc.

You find the house completely trashed with missing appliances and cabinets, tenants were cooking meth, windows broken, etc. 6-8 months of unpaid rent, unpaid utilities, thousands to empty the abandoned property and trash, $50,000 to completely renovate the property and make it rentable again, plus all the time, energy, and stress along the way.I would actually argue this is pretty common and not even the worst-case scenario. 

I agree local institutions are a good starting point for financing needs like this, but I'd expect the bankers will be unfamiliar with the STR opportunities in the market.

I really learned a lot (this was my expectation). 

If the internet service goes out during a storm for 3 days will they also realistically expect you to pay them?

I've had over 100 broken windows in the last decade and only had 4 of those admit to breaking it on their own.

Costs may disqualify the opportunity even though in theory it can be converted.I believe its important to set expectations and if this is an 8 bedroom RSA5 home just as an example you very well could be looking at a building that's obsolete and again even if it is RM1, depending on the costs of the conversion, still potentially obsolete.

According to them, they definitely did not get what they were expecting from Karim once they signed on.

If the break-even point is within your expected time frame of holding the mortgage, it may be a good move.9.

There are three items required to make a successful partnership - Time, Experience, Capital.If you are a syndicator, you are likely expected to have time and experience.There is a lot that goes into being a competent syndicator - Proper communications, finding a good deal, communicating quarterly updates, networking with lenders, contractors, PM companies.You can gain experience by doing your own deals or working for someone who does(Ideally both).I personally think you should cement your experience before worrying about OPM.Best of luck