If this area interests you @Angelo Proto, he would be a great person to reach out to.

LLC is more based on protecting personal assets from business liability.

I don't have personal experience with it though. 

And, I just don't buy that GPs will liquidate the deal to finance their personal problems - if that's the case, then I invested with a GP who was irresponsible to risk their family's financial future on a single deal.

The seller needed to sell quickly due to personal reasons, which allowed us to negotiate favorable terms.

:-pI don't think it would be worth it, personally, unless your end goal was to relocate to Spain.

Have had it happen in personal houses before, it was usually due to humidity in cities with high, high humidity. 

Anyway the point on the land basis is if you have a very low basis you have just now subjected your land equity to ordinary income and market risks on top of it.Plus personal risk on the loan if it goes bad do you have the money to pay the first off if you need to.  

Obviously the key to a successful flip is to find solutions for the distressed person. 

My personal motivations and limitations have made me not consider turnkey, flipping and house hacking.