He's my friend too so he Venmo's me money.

Minimal cash out-of-pocket, ($800), no banks, no hard money.

Find a good number of General contractors, you can get references from other real estate owners of your asset class, online, your architect, wherever. 

Based on my calculations and preliminary research, I have found that the Bay Area offers good returns from developing land, although acquiring level land and obtaining permits can be challenging.I have a few questions:1) Is it recommended to purchase a complete house plan from online sources like ePlans or similar websites and then customize the architectural design before submitting it to the municipality?

It's in a part of town that is being revamped from former industrial to nice stores, shops, restaurants, and businesses and I believe there is even some money offered to help revamp that part of town if you purchase something and help improve the area.  

If I was your friend, I would point to the fact that the landlord will not explain what is owed or why and that you can't just pay money that nobody can explain clearly how its owed.

Cashflow, appreciation, somewhere to park money or other?

While I don't do anything with wholesaling, I do/can provide help as a Private Money Lender for you.   

ReweyDoes anyone else see this as pooling money to passive investors for partial ownership ?

On the other hand, you are risking the money and that's worth a lot.