Once the funds are up and they can't repay the loan(s) back because offering free services are just enticing new investors that do not have a real system setup.

Doesn't sound like it would be too difficult to get funded.

I have a pretty large emergency fund in place for those properties, but I wonder if that capital could be better employed elsewhere (potentially acquire another property).  

Is it better to have a job or business that is doing well, then funnel the money into larger projects, if my desire is to be one of the main GP for like 33-100 unit multifamily projects?

The first mortgage will provide a payoff to the sheriff/court and the funds from the auction go to them.

After 45 + years as a real estate investor, broker, lender, fund manager and syndicator, I’ve become aware that the “dream” of many investors and investor “hopefuls” is to be able to generate enough cash flow to live off their real estate holdings and accumulate enough wealth to make “work” optional.

I am stating out with wholesaling and once I raise enough funds will be investing in rental properties and flips.

It's a spacious 4br 2.5 bath with finished basement in desirable school district in a B Class neighborhood.

Our first accepted offer was a 320 unit deal that we contracted, put up non-refundable (yeah, I know) earnest money, and thought we had our financing and money in place to do the deal.  2 weeks before closing a major (several million) partner pulled out leaving us short of the funds needed to close. 

You have numerous funding options so pick your poison.