There are limitations such as you need to find deals that are 75% of the ARV all in cost once completed, nonetheless that is very feasible with deep value add deals. 

I have been buying stocks, index funds, and Master Limited Partnerships (which I will get a Form K-1).

The limited partnership itself already reduces liability (which is why you are called a "limited" partner...because of limited liability).

@David Yee SB9 allows for lot splits but there are a lot of limitations.

Instead, focus on how you can turn what you have into a consistent flow.To do that, you need to reverse-engineer what it takes to get consistent deals.The biggest mistake people make is this:"I have $3,000, 4 wives, 3 chickens, 2 feral ferrets, 5 girlfriends, 7 jobs, and only 2 hours every other week because of my job and all my girlfriends... how do I become successful with this hectic life and limited hours ?"

If the lease agreement does not define or limit the rent increase, consider all relevant factors and make a decision. best wishes. 

What would you recommend how to get started when I am limited with money?   

@Steven MendiolaSo Colorado just passed a law this year taking the local limits cities were placing on people related to the number of unrelated people living together so no need to worry about that issue.

Losing $50k through this is not ideal, but I’m fortunate that it is not a painful sum to lose.What I am seeking is advice on how to leave evidence in the public record that could be found by future landlords and limited partners vetting the GP, who’s seeking $8M total / $250k each from accredited investors per facility as he seems to have a plan to move around the country opening facilities.A $57k bill could be a devastating to many landlords, and I want to help prevent them from experiencing a similar situation. 

But the numbers you just posted aren't far fetched, you just have to factor in everything that could go wrong and create a system to limit your risk