Possible to invest as a not for profit neighborhood association?

[Justin Taber]

We were wondering if anyone has ever used neighborhood association funds to invest in a property then manage it?  We would like to then use the income we could produce for the association to invest in or fund other projects.  

We would not be looking to build a large buy and hold portfolio for the association but we think it would be a good opportunity to buy a run down home in our neighborhood and get it fixed up.  This would help to make our neighborhood more attractive then we could rent/flip it and reinvest our income into other projects the association is working on. 

We have just begun thinking of this and wanted to hear some thoughts from Bigger Pockets.

Has anyone ever done this? Can anyone think of potential problems/liabilities/tax implications that could arise from doing this?

Any insight would be great.