Here are my numbers:$82k PP and CC$60k renovation (fully permitted)$3k holding and misc$145k all in$200k ARVRents range from $650-850 (of course I think for a brand new unit we'd command the highest rent)$55 gross profitSo if I went traditional I'd spend another 13k in closing and agent fees.When our investors fund the entire deal we share 50% of profits so why not find the end buy and hold partner in the beginning and give them that 50% discount on the property.

The day you commit, the day you wire funds, the day the property purchase closes?

It is one time, they had a legit issue with funds, were proactive, and provided documentation.  

Regarding your concerns about lawsuits, my opinion is that it would be sufficient to just disclose. 

or once I establish LLC then I can use my personal fund to take care all that?

I have been meeting with several folks who would like to combine funds and start a real estate investing group.

The property is worth about $280k and I owe $178k.So my question for you is would you:A) Cash out refinance the property, shed the PMI, but have a higher interest rate-Or-B) Pull a HELOC out on the property and use that cash to fund another property, leaving the interest rate where it is on the mortgage, but also leaving the PMI on the property?

My recommendation would be to invest in some kind of index mutual fund and contribute maximum for the next few years, then you'll have a lot more investment options to consider. 

I currently have the funds to do this myselfHowever a family member wants to get in on investing as well.

But most of the people who were being foreclosed on were home owners not investors.So to protect yourself, make sure that you can cover payments when vacancy goes up and make sure you are cash flowing enough to cover expenses still if the rental prices dip a little and save some of the cash flow for an emergency fund - maybe 5k per unit.