@Kevin Wood The agreement would be all good and all but it still comes down to the cost of foreclosure and holding time should it comes to that since I legally can't force a sale without the title.The negotiation is still on going and I'll see how it goes from here ... but I am trying to find a way to make this deal work since besides the profit it also serves as good experiences for these types of situations.

@Christine Luong I would guess the loan covenants would spell out your on going obligations via owner occupancy and subleasing. 

Outstanding code violations and open/expired building permits can come up as an issue with a mortgage, obtaining insurance or become an on going fine in the form of a lien against the property.

Ongoing maintenance costs are significantly higher in such locations.

They wanted a cut of the monthly rents, on-going.  

The property that I am purchasing has a month to month tenant in it that I plan on evicting as I will be living in this property.As soon as I get final word that the deal is good to go I plan on going to the tenant and introducing myself and giving them a cash for keys deal. 

I see the Houston market keep on going up and up everyday.  

But is a syndication a good fit for adding partners at different times on an ongoing basis, we would be buying SFR and apartments of all sizes for long term buy and hold?

Cash flow statement are ongoing and just need updating monthly. 

@William Hochstedler - Are you approaching this from the angle of having the property management company find a buyer among their investor clients and get paid a commission (and possibly an ongoing management contract)?