Under that structure you would be regulated by the SEC and the whole deal should be structured accordingly.If you are planning on having some level of active involvement in the operations and not completely relying on someone (The GP in this case) to manage your capital with the expectation of future financial return on your invested capital then you can go ahead and just go the "partnership" route.

Financially it is not a stretch for my sis and broinlaw without having my parents contribute. 

For whatever reason, I woke up one day, felt like I could achieve financial independence and create an early retirement.

I may be able to get a financial partner for this balance but if I cannot what are your thoughts on using an additional loan?

You’ll need to take the financials and put together an Offering Memordandum to present to investors (usually takes me a few days).  

Regarding damages, if you were able to get some sort of financial judgement, the chances of collecting on it would be close to zero.

My understanding is that under normal circumstances banks want the funds in the account for at least 3 months before being used for another purchase, aka “seasoned.”

They stated their starting price; as I asked for financials they sent me their tax returns I asked if they have anything more specific to each unit and etc.

HOA board members are generally unable to separate the "insult" of having to carry their neighbor financially from pure business decisions.I think your best bet is to work your deal so that the HOA is paid off in full. 

So, it wasn't the wholesaling that didn't work, just my circumstance!