So we can be a piece of the puzzle but not the creator of the structure.I don't know about you but I'm looking forward to interfacing with @David Miller who just posted above. 

You may get lucky with a slow season right now, but I have been down the 203K route and without a good contractor signed on board you will have trouble.Your plan is still a good one, but without the proper pieces of the puzzle (contractor, bank to sign off on 203K + contractor) you will have trouble executing it.

But micromanaging becomes mentally exhausting and drives away good business partners who are more than capable of handling their piece of the puzzle.

If one partner sourced the deal, one partner was a GC and handled rehab and one partner handled legal aspect I could then say they all contributed funds plus an addl element to the puzzle , then I could see where pooling your skills and efforts at cost would benefit the whole and dividing profits equally would be fair and reasonable.

Few missing pieces to the puzzle, I need to know more info before I can give my opinion.First, your current mortgage is $295K, what it the value of the house?

This is the missing piece to the puzzle for me.

I'm just puzzled by your statement that some of the properties are in an "LLC partnership". 

I feel like I'm missing a piece of the puzzle here....decent income, but on paper we show high DTI due to trying to write off as much as possible for tax purposes!

Of course, interest rates are a piece of that puzzle.

On the other hand, for us, Accounting and Bookkeeping is a puzzle where we put the pieces together.