If you have equity and decent credit, a conventional Fannie Mae HomeStyle (or the Freddie Mac version) would likely be the better option instead of an FHA 203k loan (which will require a 3rd party HUD consultant to oversee the deal in addition to having the contractor involved). 

who are involved in wholesaling or other real estate ventures.

Real estate is transactional where people are involved so it won't be a black and white answer.The best to do is to find an agent that fits your needs and guide you through the process.

The truth is if your investors have no involvement in the operations, If they just put in money and expect to get a profit, you have created a de facto syndication.2) I see a ton of people who just raise money for the syndication. 

Of course, every owner's situation is unique and factors like the legal entity involved, purchase date, adequate passive income that can be offset with the cost segregation study, etc., will need to be considered.

I'm involved in too many things, but that's what happens when you have a family and kids to support.

That complicates enough I'd consult with an entity/asset protection pro.I don't hold residential assets in LLCs unless partners got involved. 

Sometimes occupants still live there and eviction is not easy, and I have even heard a story once that the yakuza are involved in the construction and real estate business and exorted money from buyers through occupants in these properties. 

The LLC can sign an agreement with the debtor (mortgagor, that’s YOU) accepting liability for the debt, but that’s only between the two parties involved in the agreement.  

In rising markets, you might want to hold onto some properties longer to maximize your returns.By focusing on these areas, you can build a solid foundation for a scalable distressed property investment business and navigate the transition from individual deals to a thriving operation.ConclusionScaling a distressed property portfolio involves more than simply increasing the number of deals; it requires a fundamental shift in the way acquisitions, financing, and operations are structured.