I was under the impression that when you pool together investors on a syndicated deal, you have essentially created a security. 

I am forecasting 10% returns if we can land in our desired revenue target. 

The equity will essentially be paid back to her in monthly installments.

Meanwhile I'm saving as much money as I can for a good head start (most of it is invested in the stock markets, in low risk low revenue stocks).I set 2 goals for myself, which are-1) Ensure financial security for my future family,2) Do everything I can to bring peace to the middle east and the whole world.

Essentially they are performing their duty and operating as designed.Garbage disposals are notorious for breaking.

The numbers look a heck of a lot better with that additional revenue.  

The cap rate is 10% (you're earning 10% annually on your investment).So, if your target is to buy at a 10-cap: If the NOI is $15k...now the property is worth $150k to you.If the NOI is $7,500....now the property is worth $75k to you.This is essentially how cap rate determines price when using the income approach to value properties.

She did put in a lot of work on the project and I guess I am not opposed to paying for that, just how much that is has been bothering me, because any amount he comes up with is fine because essentially whatever fee we pay her goes to him anyway.

Your budget will depend on how many letters you need to send in order to start creating revenue for yourself. 

Essentially if you are living there you have a say in picking your neighbor which you don't in an apartment.