Syndicators do this because most passive investors are not sophisticated enough to realize the "security" of the preferred return means they usually are giving up the potential for massive returns if the deal does well.This next comment would apply for all syndication.  

While it was a scary jump at first, we quickly realized this space is actually less competitive.

A friend of mine in Austin once negotiated a partial buy back option when the seller realized they might want back in if the market soared.. from what I read in Bloomberg, that approach can work well if both sides trust each other.If the tenants’ rent covers your carrying costs, that’s a nice cushion, but you still need to clarify that buy back clause.

It doesn't add layers of physical damage coverage or cover things that wouldn't otherwise be covered.Agreed, didn’t realize that was the sole aspect of the question.

I did not realize one of my units had the 7-night minimum but that currently is a requirement in my city, I do not always follow it.

Michael, I regret that this is happening to you but I think you need to get past chasing rent for this month and realize that there's only one way this ends.

So while current market rents may not reflect higher insurance costs, after 1-2 years when owners realize higher costs and go through renewal cycles, market rents should increase.

It sounds to me like your Austin home is a "Sell" candidate - while it could appreciate over the long-term, you might be sinking cash into it for many more years in order to realize that appreciation.

He was the one who initially contracted the property and brought us on board as investors.We are deeply invested in this project and are looking for potential partners who can help us realize the vision we had for Corktown.

I think the threat of lawsuits, and perhaps the realization that they're out of their league, is starting to hit home.