JV FLIP, TIC, TAXES, LOAN OPTIONS...whew!!!

[Troy Sheets]

A fellow BP member and myself are going to partner on a flip, he's providing financing, I found the deal and will manage all aspects beginning to end. It's a 60/40 profit split, 60 to him.

Purchase price is $155k, repairs are $90k and ARV is $350k. It's a 6 br/1 bath, 1700 sq. ft. row home that is occupied but probably shouldn't be, it needs everything. We'll take it back to 4 br as the rooms are small and choppy, add a master bath and a half bath, add a roof deck, etc.

I did some research and it seems the best way to partner on the deal is to take title as tenants in common and draw up a joint venture agreement spelling out duties/obligations, profit split, and exits. Is there a better way or is this the recommended path? What happens at tax time? Obviously we'll both pay taxes on our portions of the profits at ordinary income levels, any other considerations?

Lastly, regarding financing options, we don't want to use hard money but can put 20% down to cover both purchase and repair costs, can we get a construction loan and take draws? Is there a commercial loan that may suit our needs better? We appreciate any help or insight, especially from @Aaron Mazzrillo