I highly doubt they were a scam.

Are DST fees included in 5.25 estimate I read some as high as 20% fees?

In this scenario I highly doubt the city would find you liable as the building has been vacant for a while, but I've never run into this scenario before. 

Happy tenants, high equity and little money invested.

They have high fees but professional management. 

It is amazing to me how many people will trust their hard earned money with someone that was in middle or high school during the financial crisis.Beyond this initial search:Experiencetrack recordBusiness PlanAsset typeProjected returnsFinancial StructuresRights and remedies in legal docsRedemption rightsSupplemental Capital CallsOperations capabilitiesOwner/Operator or capital raiser for othersK-1 TimingUse of bonus and accelerated depreciation1031 optionsVertically integrated or outsourcedExperience of team through multiple market cyclesBackground, if any, prior to real estate and syndicationProjected returns net or gross of fees and carrySeeing full financials of current deals with budget vs actuals (if syndicator does not share, or only shares P&L delete their contact)Color on deals that went sideways or lost money and whyMarket analysisColor on why they like that dealRisks of the deal, as they see themDo they have third party audits, ideally from one of big 4 firmsAre they a fund or single asset?

Deductibles can be a problem too.Warranties are a high profit business for a reason, because the pay out is nothing compared to the pay in.

Consider the following:12 unit in somewhat rural Wisconsin, 6 separate duplexes on one piece of land, priced at $849K.OM Insurance cost: $6200 (seems high)Broker proforma: $30001.25% - 1.5% rule from @Juan Vargas: $10,612 to $12,735$250/unit rule from @Gino Barbaro: $3000The WI apartment deal isn't a traditional apartment building so I tried it on one more building. 

The location is growing and its the safest city in that entire county. home-ownership rate is very high like 85% most of the homes were built in the last 24-36 months.

I priced a home too high once and I wasn't getting anything, once I dropped it to a certain amount I had leads coming every day to see the home.