I would also look into reaching out to a handyman/contractor and asking if you can work alongside them/their workers.

@Yonah Weiss i will say that if i bring a deal i won't take less than 10%... if I'm liquid i will invest alongside the partners...

You could put 50k-100k in alongside your LPs, and still have money left (maybe for risk capital, or another deal).

Is it fine to be working alongside the contractor in the home?

The language you supplied addresses that where it says “First...”If the sponsor is investing cash in the deal alongside the investor, they would participate in this tier on a pro-rata basis, however.The provision beginning with “Second...” addresses what happens to any remaining distributable cash after the first tier has been satisfied.The only confusing thing to note here is that “members” is not capitalized in the second provision.  

Luckily, I know several that still have 100s of millions of dollars in liquidity (fine in the long term) but have paused alongside their competitors as a conservative measure in the wake of uncertainty caused by this virus although the big issue is servicing/back end (dried up secondary market for these loans/pending foreclosure wave).  

I want to observe alongside and also help with some of the work / capital needs.

I work alongside my dad Jim, who has 30 yrs. experience in the multi-family real estate world.

For example, our property pays a 9% hotel tax to the city, essentially as our collateral for being allowed to operate alongside hotels with no issues of ever being shut down.

This was an SFR that the owner converted into a triplex working alongside his contactors.