I have them all replaced. 2. curtains/drapes are stained with food and whatever red, purple color. 3.

Usually I have learned that paying an upfront fee to lenders is a big red flag - so what's the deal here? 

Whether intent is there or not, you will be accused of redlining if you spin "red yellow green" or similar color coded market maps to identify places to invest or move.  

There have been quite a number of red flags and warnings in this thread and many of your responses tend to be, "but what about this and this is why that is" leading me to believe you have already made up your mind that moving forward is a good idea so I wont try and change your mind but again, warn you that some things in this syndication are outside the norm and the promised rates of return (STR's in the package included) are abnormally high leading me to believe that the investors will have a much higher chance of disappointment than satisfaction.

There were some red flags during the acquisition process but their PM team has proven to be flat out mediocre. 

Every unit is safe and would pass inspection, I'm just getting screwed by government red tape..

Exclusively north of Red Deer and into parts of Sask as well.  

My company is Red Key Services LLC if you want to look me up. :)

Are there enough red flags that I should run for the hills?

This way, you will eliminate the custodian completely with its fees, red tape, etc.