Rather, it will be considered earned income... and if you have losses especially the first year with a bunch of start up costs and depreciation... and if your money is at risk (let's assume Yes), then this business venture can offset (or add) to your W-2 income.This is how short-term rental loophole works.

,...the one that makes  you more money. 

Quote from @Aroldo Gonzalez: If you borrow money from your current property, that will increase your debt and reduce - and possibly eliminate - your cash flow. 

So, looking at the flips I take on, with anticipated profits in the $70k+ range, the setup costs alone are eating nearly 20% of your potential profits, and that is before any real splits with your investors, leaving both your investors and you with not a lot of money left to spread around.A fund could work, but typically, for the economics of a syndication/fund structure to work, you are looking at several million of equity, leveraged up to high single millions, if not into $10+ million range for their to be enough money to make it worth everyone's efforts.

For example, turnkey is great for people who are busy working 9-5 and want to simply invest their money somewhere instead of it sitting in the bank.

Layoffs have started for full time jobs and people want to save money instead of going on vacation, other people can't afford it because they have run up their credit cards because their salaries hasn't matched the rise of inflation for basic goods.

It is still a good investment, as money continues to flow into the area.

I've been told I can get rehab budget (basically hard money terms) but I'll struggle to get commercial financing given the number of units and valuation.

Failure is not an option in anything that I put my time and money into. 

Being that I own it outright, and only need $125k (budgeting for unknowns), not many hard money lenders have been overly interested.