Zoning for 3 and 4 units might be the same and it's not really the ground to litigation unless you're the seller and didn't know that and, as result, lost $350K on sale.

I also suggest a bug inspection and a sewer line inspection. 

In one breathe you do not want to be a sponsor or managing member but in another you are not wanting to be a passive investor in a larger syndicate.It sounds like you do not want to to work for the yield a sponsor gets but want more return than a passive investor gets as standard investing in a syndicate.Sounds like you are looking more for a joint venture arrangement.Brian Burke is out that way and a member on here and he does large multifamily syndicates.

I've been studying the stuff for a year-and-a-half and haven't done anything because I had experience time  and again of how just me with one mind makes mistakes.

I am very new to real estate and BiggerPockets but I'm very confident that this is the path I want to take for financial freedom and a fun filled less stress life! 

Personally I think this is a shady way to do business and a good way to damage a reputation.

I am now in a w2 job because i now understand the power that the w2 provides for doing the BRRRR strategy since ive done that in the past. one of my partners is a contractor and a great one at that so weve been biding on homes we like on HUBZU and with the cost we save on renovation it really allows us to bid a bit higher then the others. unfortunately we have not won one of the properties but were going to increase the amount of bids we place within in our criteria.

I currently reside in the Washington DC metro area and as a relative newbie to all of this I'm looking to get started in real estate investing.

The deal has good Debt Coverage at 1.62 and it will cash flow at 19k/year.The building is partially rented (2 units - 2 Bdrm and a Studio) with one 2-Bdrm ready to go.  

It's a bank-owned property that needs new carpeting, paint and a good cleaning.