I know that it's common with Turnkey companies to overvalue their properties. 

One of the most common complaints I see on reviews is how the area, location, or house did not look like they thought it would or was promised.

This is fairly common when people want anonymity.

The most common options used by investors seem to be an LLC or Umbrella Insurance. 

That's a common phrase.Real estate investors can get more bang for their buck from their PMs when these folks "think like an investor."

The red flag for me was common sense.

Only thing better would be initial deposit and then paid in full upon Certificate of Occupancy and punchlist complete.Of course, standard items should also be checked: licensed, insured, willing and able to pull all required permits, reference checks.I would also commonly avoid the cheapest bid you get.  

@Rud Sev, I would ask the syndicators you are considering if they have any sample K-1s they have issued in the past to try to get a general idea of how they treat their common taxable items.There are a few things that are likely needed to be outlined:Your capital account balance for the investment, i.e. how much money the syndicator is saying you have outstanding at any time and used to calculate preferred returns, can vary from your taxable capital balance shown on K-1.  

You should target states that have more common sense and people oriented government and regulations (hint-hint: stay AWAY from Dem controlled jurisdictions.

Make sure everyone knows a cleaning schedule, expectation for common areas, how are you splitting utilities, guest policy, etc.