If it is a class C office building with 10% occupancy that is very different than a Class A MF which is still very different than a debt fund with zero leverage.As mentioned risk and return go together  - greater risk should have greater upside

Of course, you can always contact a prospective fund operator directly and ask them your own set of DD questions (ask for their track record, properties that the fund has acquired thus far, performance of the fund, past funds that have closed to investors and how they have performed, etc).  

My current agent suggested if it made sense financially, to do some rehab work to get the properties rent-ready, but I do not have the liquid funds to do so and sell these as-is.

Have you considered moving those funds into a self-directed IRA (SDIRA)?

I found a property in my area that would produce decent cash flow and appreciation; however, I would have to use funds from a HELOC on a different rental property for the down payment.

Anyone can get 4.3% now in a 100% treasury fund (was 5% until recently), virtually risk-free.

See the fact that mortgage rates are up about 1% from Oct when the fed started to cut the fed funds overnight rate as evidence. 

Anyone know the names of the funds that Lee claims to manage?

Don't use your emergency fund. 

If so you need to fall into the guidelines (for the investor whos funding it) regarding non arms length transactions.The most common scenarios they typically prohibit are:- Gifts of Equity- Bailouts- Leaseback OptionsAt the end of the day it needs to be a legitimate transaction, with legitimate funds coming into close.