You are now in business with someone who may not be as friendly or sophisticated. 

If securing a conventional 30-year is tougher than a bridge loan for flipping, then we may look into flipping instead.

Most areas are viable if you're securing off-market deals.

Look at your risk vs. reward and what safety nets you can put in place to protect yourself (I.e. tenants with garnish-able wages, increased security deposits, etc.).

Wholesaling will allow you to take off-market deals that you secure through your preferred marketing method and then assign them to a buyer for an assignment fee.

Legally creating one is definitely something to discuss with a securities attorney who specializes in funds.

I don't like the idea of leaving security deposits with them because they don't keep it in a separate account.

I currently have a tenant who gave me 30 day notice on 10/21 to move out on 11/31 and is refusing to pay the last months (11/1) rent but telling to take it out of the security deposit. 

There was an issue with the previous roommate tenants (dispute between themselves...also seemed like trouble in general which I hadn't foreseen during screening) so it was agreed they would move if a qualified tenant was secured. 

Looks like I’ll be good to secure a HELOC with them.