I could also take the money from another source, but wouldn't be able to carry the 2 mortgages on personal loan I don't think.

Can a person own two homes with two VA loans and refinance one of the homes  into a conventional loan freeing up some of the entitlement which would enable you to buy a 3rd home under the VA loan?

Personally, I would be hesitant to jump into a deal when the existing partners are cash-strapped.

If someone injures themselves and sues, they will be suing the LLC and not you personally.

They email all homeowners that the surplus is to be credited to their accounts.

I have used this strategy personally more that 10 times and helped many clients doing it.

Regular reconciliation of accounts and maintaining a clear separation between personal and business finances is crucial.

Pushing your wears on an new person who just asked a question is pretty low ball.  

There also could be tax benefits and fringe benefits like personal use.Good luck!

If it was my first, I personally would flip it.