The contractor will do the work and when the house is sold we shall split the profit.This is high level based on my thoughts, i am looking for experts here to give me tips; financial (how to calculate splitting the profit), legal, accounting, project management etc.

If I'm understanding correctly that would needed for the house to be legal limit. 

@Brock Mogensen @Nicholas Mullens  I buy at Sheriff Sale, have been for years, but you will need cash or a Line of Credit as the properties are generally not legally accessible. and often you cannot view the interior.

According to him: Legally:  if the LLC gets sued Maryland laws would apply because that's where the lawsuit would be  whether the LLC was formed in MD or CA. 

We cleaned out the tenants, evicted the maintenance guy & $25k later in rehab it's now a legal 6-plex that's rarely vacant except for the usual tenant transition.Good luck but think it through!!!

Did you ever serve them a legal notice and for what lease violation? 

I want to pull from my Savings Plan to begin investing but not sure how to go about it looking at my debt to income ratio and having the two property.

HOA debts are obvious debts though, typically they miss code violations, utility bills, etc.

What are the legal aspects of forming this fund?

You just need to wait until you reach the legal age.