Would a commercial lender only finance a syndication if the sponsor/MP had sufficient financial reserves or is there a way around this? 

This is what I would generally recommend for people with the down payment or that are already in the Investing game.Regardless of how you want to get into this I would recommend you have whichever down payment you want to go with as well as 3-6 months of reserves.

He immediately contacted his client, confirmed what had happened and called me back to apologize and assured me his client was taking steps to ensure it didn't happen again.Briefly on title theft, there is no such thing. 

We both verbally agree and confirmed via text messages.

How much $/% does everyone recommend in reserves?

Look to see if someone is paying their bills on time and if they have any cash reserves to weather a storm.

So your going to need to look at your budget and reserves. 

Voiding your title insurance: Check with an attorney/your title company to confirm there will be no issues.

Read below our standard advice when evaluating PMC's:In our experience, the #1 mistake landlords make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

My mind frame now has evolved from two years ago, and I now see the extra income as enabling greater security reserves, providing the ability to hire repair folks instead of DIY which saves personal time, and to improve the property more beyond the minimal.