Hi Manolo, I have read J Scott's books and have reviewed them many times when creating my business model.

By participating in group purchases, whether through LLC (or LP), fractionalized interests, or payment dependent pass through instruments, the amount needed for a diversified portfolio would be substantially decreased.  

LLC, C Corp, LP etc.

(Mind you, we are talking about the fund not the investor, which the OP stated is an LLC) The general partners run the fund and the investors invest into the LP as limited partners.

I feel like flipping cars requires far more specialized knowledge of markets than RE and the whole idea of fixing up vehicles yourself is opposite of 10x models.

I tried to model the scheme as simply as possible.

Buildium is sort of following the same model with tons of investment money and overseas development.  

I wouldn't listen to one guy complain about his niche business model becoming extinguished by competition.

anything left over after the home is sold would be considered my development fee i guess.Question #2: What is the best approach to offset or minimize taxes for this type of investment/development model?

I Personally believe to create a business model your going to count on that involves the owner will change their stripes and become a great payor..