What would be much better is providing funding for hosts for the additional supplies or future credits/discounts on fees for participants in the program. 

I wouldn't brush it off so quickly, I know people participating who are actively organizing their neighbors, it would be wise to keep an eye on the attitudes in our respective areas and be prepared for what could be a challenge for ma's, pa's, and companies alike. 

The deal is structured as a profit participation agreement with shared percentage of profit or loss.

The tax law disallows passive losses to be deducted unless there is passive income (small 25k exception for certain taxpayers) For this to work, you have to be nonpassive with respect to your rentals, and rise to the level of material participation.

When you factor in the labor participation rate unemployment could reach over 30%

You'll need a career, so being an agent is a fine path, but read to of books on RE investing, and participate in BP forums.

@Jaleh AfroozeUnless you are a real estate professional and operating your rental portfolio as a trade or business with material participation then this exception will not help you.

Are you all going to be active participants in the business, or will there be a passive "money" partner?

Participating in Syndications is a great way to learn and minimize some of your risk. 

Can we just write up a contract that outlines the details of the investor as a profit participant in my single member LLC?