The question is whether or not all parties will be actively involved in the deal (JV/partnership) or if there will be one lead/sponsor/general partner and the rest will be passive investors with expectations of return on their money (syndication).

However, that involves having local internet access, I believe, meaning I would have to have a deal with one of the tenants on sharing their internet.

In my state the only way it can be disbursed is with a signed agreement agreeing to the release and distribution by all parties involved in the transaction, or by court order.  

So it is like for like, but with family involved.

We leverage our service people to keep an extra eye out.

Absolutely.Now, thankfully, I am not in that position anymore, and my portfolio has grown to sustain itself without my personal finances being involved. 

I know that there is risk because of the lack of paper trail, but could this also raise a red flag for the seller not wanting the banks to get involved?

I may be over thinking it, but it seems that becoming a RE Pro in the eyes of the IRS is in my best interest and I want to properly log everything and take advantage of everything I do RE related, if it counts towards those hours. 

My wife is a RE Agent and a new build in a different part of town in Dell Valle development (master planned community) has caught our eye.

Also be aware that in both exit plans you will need to be very ethical in your disclosures to all parties and there is some paperwork involved.