Then once it is appreciated and i have some decent equity and am ready to expand either pull out the equity through refi and rent or sell and buy another sweat equity project.

I am willing to put in the sweat equity and time into deals and work with experienced investors with an overflow of deals and capital.

Starting out, you can do more things yourself and gain sweat equity in the property.

4) Should I put any $ of my own into the deal, or just straight sweat equity5) Do we need to set up an LLC to do this?

I'm not giving out big deals until I know my agent is willing to sweat the small details and be responsive.  

Also, since I'm in construction, I know a bunch of great contractors that could put "sweat equity" into the deal and rehab properties for you in exchange for interest payments on what their work would have cost until you pay them off.Me: Seriously?

You can put your sweat in to sweeten the pot.

Finally got the home rented out and I am now sitting on some sweat equity I'd love to invest!

@James Billings-Kang had to get a little assist, (read I paid late) for a roof that was about $20K, everything else was cash/credit card and of course lots of sweat equity. 

I'd go quiet and give them an opportunity to sweat.