Not only was it illegal, but its dangerous to me and my renters.

I feel like MOST flips are getting incredibly dangerous, even for the experienced investors.

"A little bit of knowledge is a dangerous thing."  

And, if your expenses or/and rents are off, you may be in negative cash flow territory. 

In order to best serve my investing partners by minimizing risk and increasing the capacity for deals, I am now strongly considering pooling resources and opening up a Private Equity Fund.This is new territory for me and I am wondering if anyone has any experience starting or being involved with a Private Equity Fund?

But, there is a very serious danger of lack of focus.  

Hi David, I wrote a blog post about it here: http://www.biggerpockets.com/blogs/4837/blog_posts/35033-the-dangers-of-investing-out-of-state.

Having $1M and little real estate knowledge can be a very dangerous thing.

Look for an under priced property in an up and coming yet not dangerous area.

......and my no-go spots are pretty much everything with a East in from of it, anything west of 95 up to union between Lancaster and 4th, west of market between concord Rd and 30th up to the 500 block, and the most dangerous section of city which is easy of 95 to Washington St from 9th St and south.