Let’s also look at income, not just total wealth, since many folks, especially hourly workers, in the bottom 50 unfortunately, really can’t/don’t save much money or own income producing assets.

When you are getting  down money from other people's money, with floating debt, it's a speculation.

Found out later that this was this GC's MO to undercut everyone's bid, then make back the money and then some with change orders after the project had started. 

I need money to rehab should i do a heloc on my primary residence ?

Treasury bills are paying 5% and if you stagger their maturity you could have the money ready to go if you find a better opportunity.

The other benefits, or lack of, have been covered by the previous posters.In all seriousness, I would not waste your time, money, and effort on an LLC just yet.

The Lead investor is the one finding the property, setting up management, raising money, managing repairs and upgrades, dealing with insurance, making distributions to investors and completing all the tax documents for the investors. 

Aloha Julian, Just to add onto what everyone has said, 1-4 unit deals (residential) are typically underwritten differently from 5+ unit deals (commercial). 1-4 units are easier to close and you get more money for them because of how DSCR is calculated:- Residential (1-4 units) DSCR = Gross Rents/Mortgage Payment- Commercial (5+ units) DSCR = Net Operating Income/Mortgage PaymentIt's important to note that in both cases above, there are exceptions.

If you want 10% returns you might have to look in another market, but if you want to park some money in a solid property, as long as it generates enough to break even after all expenses, taxes, etc. to allow you to hold on to it for 5-10 years I'd bet it will do better in the long run than a 10% cash flow property in a lower end market. 

I'm looking at putting money into it and recommending friends to put money into it so any advice is appreciated.