If you are using it to buy a turnkey property which needs to produce cash flow to be considered a viable deal how does buying turnkey(Little to no cash flow) combined with HML(High interest only debt) make alot of sense financially? 

It might take a large financial institution with capital for “brainpower” and marketing, and financial and reputation strength to design as well as create a trading market for this type of security. 

I would think in most situations the original owner is in financial trouble, probably delinquent on their mortgage and facing foreclosure.

Selling gets a tax free gain and allows you to be more liquid; keeping it allows you to have once in a lifetime cheap debt and have that leverage on an appreciating asset. 

Quote from @Stuart Udis: Having experience with a Reg A offering, the audited financials should have had to have done an asset valuation with a footnote and how they came up with that valuation. 2023 audited financials are due April 30th (next week).

It's properly leveraging (not over leveraging) the asset that pays off.  

You Can Only Have 35 Non-Accredited InvestorsRule 506(b) allows an unlimited number of accredited investors but restricts you to only 35 non-accredited investors.However, there’s a catch:Non-accredited investors must be financially sophisticated.They must have enough experience to evaluate the investment risks.From the SEC:“Securities may not be sold to more than 35 non-accredited investors… [who] must meet the legal standard of having sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment.”If you’re planning to include non-accredited investors, make sure they qualify—or you could be violating SEC rules.3.

Everything you need for asset management on small or medium portfolios without much frill.

They’re asset-based, meaning the loan is secured by the property itself, and they often have quicker approval times but higher interest rates (think 10–15%) and fees.

I'm not sure if that would bring in enough money but it would certainly make things easier financially speaking while you built up your real estate portfolio.