Consult your investment adviser before making any investment decisions.

Was a HUD consultant brought in (i know not required but suggested for a streamline 203k)? 

I would consult a TX accountant to see if what tax implications there are here. 

To answer your question...I would personally pay a real estate agent to do a consultation with you to explain this to you.This might be a great learning experience for you, and well worth the investment.

Whether you form an LLC or an investment club among you I would suggest you consult this with an attorney to help you put that together.

Since you're dealing with a fairly large sum of money (and a potential tax burden if you do it wrong), I'd suggest consulting a tax professional who can go over your individual circumstances and help you make the best decision going forward.

I know to stay away from the real rundown areas which should be easy to identify and I will probably be using some kind of consultant to pick an area to live in, nothing fancy or terribly expensive just some place clean and safe enough to live and work from.

Please consult with an experienced securities lawyer who has handled real estate syndications before.  

I'm a real estate consultant in Austin, Texas and our market is booming here!

YOU SHOULD CONSULT A LAWYER OR ACCOUNTANT TO MAKE SURE YOU DONT MISS ANYTHING SETTING THIS UP!