Also, I've been asking most people I talk with for references and keep getting in contact with more people, all of whom have been happy to chat for a few minutes.

Partnerships can be incredibly rewarding, but only when built on a solid foundation.

There's no right or wrong way to do this, just varying levels of risk and reward and YOU need to understand what they are for whatever strategy you choose. 

The owner of the property I purchased is litigious in that they have filed a number of frivolous law suits in reference to the property. 

Enjoy the process, and may your journey lead you to a rewarding and successful outcome!

Does anyone have specific reference that gives clarity to this situation?

Plus the rewards certainly outweigh this cost.

So in practice , accredited-investor-only investment has bigger risk/reward than public investment.First because public investment has its own transparency.

I believe these are the ones you are referring to.

So I'd be doing my best to get the highest possible rent/revenue but without needing or counting on that.What you refer as cut-throat competition exists in every market where you have demand.