You'll be the legal owner and will be collecting rental income, so I think you will be able to utilize the common strategies of depreciating the property and CapEx, expensing repairs and other property-related out of pocket costs, as well as interest on the mortgage loan. 

These properties are likely in rough areas and need extensive work.  

A typical syndication might pay you 8% (probably starting a few months after you invest) so you are collecting $333.33 per month. 

(This is about taxes)You need a Zoning Permit for Visitor Accommodation:To rent your home for stays of 30 days or fewer.If the property is not your primary residence.Housing requirementsSmoke alarms must be installed:In each bedroom.In the hallway in the immediate vicinity of the bedrooms.On each floor of the home, including basements.Carbon monoxide alarms must be installed:Within 15 ft. of the entrance to every bedroom or within 15 ft. of a bed in sleeping areas if there isn’t an enclosed bedroom.Centrally on a wall or the ceiling, but not directly in front of a door to a bathroom or within 5 ft. of a cooking appliance.Under the installation requirements for smoke alarms if they are combination smoke and carbon monoxide alarms.You can’t post signs for lodging on your home.The home can’t be occupied by more than three people (including the owner and renters) who aren’t related by blood, marriage, life partnership, adoption, or foster-child status.You cannot change your house so that it no longer resembles a private residence.Information you must provide your rentersRenters are only allowed to have guests between the hours of 8 a.m. and midnight.You must tell renters the trash and recycling collection days and any trash disposal rules and regulations.

and of course everyone is this business was also like the poor homeowner they too were broke on in foreclosure so they just want to help now.. all these flowery BS letters I used to collect stacks of them the owners left behind.

There could have been a fire or severe damage that required extensive repairs. 

They then proceeded to go through the normal process, earnest money, etc and then needed an extension, to which they put in more earnest money. 

I feel like it's one of those situations where it's not an egregious enough for there to be any real recourse, however, I find it extremely unethical that this person whom is supposed to be making decisions in the best interest of the collective owners is willing to break the rules to advance their own interests.  

I haven't even collected a rent check as of yet. 

City road ends at park entrance.Considering the land price, infrastructure setup cost each lot cost was coming around $7300 which was very attractive even though most of the houses on them were old and needed good repairs.All other lots except the 59 were in considerable good condition and our due diligence showed that whole park value is going down due to these 59 lots mismanagement for 40 years.As per owner rent collections were around $7200 per month and most of the tenants were very long term (average rent $400 per home) which he receives in cash so bank rolls available to validate.As per our estimate, each house needed 7k to 8k repair to make it livable.Negatives:These homes/lots were owned by same owner for 40 years and he neglected everything which includes tenant quality, infrastructure (such as overgrown trees, bad homes still in the park which should have been removed years back, 3ft- 4ft potholes on the road since its privately owned).Most of the tenants were convicted or had some big felony, these houses were famous for drugs cartels in whole city.After buying we realized things were way worse than what we assumed in due diligence:People staying there actually were involved in gang wars, prostitution, drugs etc.