Find out what they will lend and walk through their preapproval to make sure there are no red flags with you (debt to income, credit score, etc.).There is always risk.

If you are going to work with the syndicator because you want to establish roots in a specific market then you should be very choosy which city you are investing in.

Red tape?

It appears to cash flow well, but I've never done a deal this big before and I'm wondering if there is a good place on these forums in which I could post the terms we're looking at and ask community members their thoughts, as well as for advice and any red flags.

@Jake Johnston I think what @Jd Martin is eluding to is that with the construction (or maybe you are referring to a purchase/renovation loan) loan, the money for the repairs is held in an escrow account and you have to jump through a bunch a red tape just to get draws. 

I had accepted the deposit but before lease signed there were a few red flags.

He says it will draw red flags or something. 

Would you still consider bidding or are these red flags of a scary money pit?  

Then you can collect passive interest on the way down and sell for a capital gain when interest rates bottom out again.If the market is head down for let's say five years, I would avoid dividend income from stocks, because the capital loss will probably put you in the red, unless you can hold til the top of the next cycle.If you find true passive income with low risk and little capital (assuming you have student loans like myself), please LET ME KNOW :)

Red flags from the beginning.