But now, must start from scratch again (or with however much you've kept or saved).There is NO scaling of paid-full-price-borrowed-too-much investments.

Consider working on a smaller deal to get started, build equity, force equity, and then scale up. 

If so, it might tip the scales in favor of buying with zero down instead of renting.     

I own a few properties and am looking to scale up myself.

The person who scales the 30K Midwest gig will blow your socal concept out of the water!

I worked as land manager for one of the largest home builders for three years just prior to the crash, but was only responsible for property due diligence, and construction of roads, utilities, and site work for large projects; not individual single family home rehabs or individual / small scale new home communities.  

Mike Hurney , on small scale, I've been doing my own hand written notes directly to home owners/properties I'm interested in.

Esentially it would be a small scale REIT, so instead of having to put down $50k on a loan myself, I get 10 friends/peers to put down $5k each and make the same purchase.Obviously there are legal ramifications for doing such a thing such as properly dispersing profits, etc, but is this something people do?

I've bought smaller multi families in Newark, but I want to expand to buy larger scale units.

@Nathan Carter have you looked at commercial scale properties as well?