Both are multi-family apartments and one has a 3.9% distribution rate and the other is 4.01%. 

I have access to deals with no debt that provide monthly distributions. 

It'd be hard for me to justify collecting rent in btc without converting some to cash and holding some as an investment.In the future, I think blockchain helps with easier transfer/distribution of equity for real property (see Fortem), title/escrow/closing (see Qualia), and others.

To me it clearly seems their distributions are just recycling investor dollars or am I wrong?

Knowledge of techniques and terminology is great - but if you don't take action, all is lost.

Cash for keys is a terrible technique preached by rookies.

That fund has distributed 6% since inception (quarterly) and invests primarily in commercial (not residential) RE.

However, ownership distribution must be clearly outlined based on each party’s financial contribution, and income and expenses must be divided accordingly.You might look into forming an LLC or limited partnership to pool funds, which can streamline asset management.

The HELOC may or may not disappear, but it will likely be "extinguished" from the property title after auction.After a first mortgage lender forecloses and it's lien is paid off with the proceeds from the sale, any surplus funds from the foreclosure sale are distributed to creditors holding junior liens, like a second mortgage lender or judgment creditor.And by the way, YES you should serve notices prior to entry just to be safe.After you acquire the property, what is the goal? 

As a property owner, what innovative techniques have you implemented to cultivate a thriving co-living community?