Partnering with seller to Rehab and throw on market, need help

[Nathaniel Ortiz]

Hey BP! I need suggestions/insight on this opportunity. I came about this opportunity from networking through my current fulltime job. I met a lawyer who's entrepreneur minded personality clicked well with mine. Being passionate about REI it's hard to not talk about it, so after a couple meetups we discussed a property he has in San Antonio. A month later, he approached me with more details and proposed a partnership. He has a rundown property in East Central area, and would like me to wear the flippers hat for him. My plan is to analyze the market in that area, and determine what the best outcome is for that property in its given condition. Based on my perspective and walk through, I have determined a tear down is most likely the more favorable approach rather than repairing each defect one by one. Foundation (Peer & Beam) is bad, not a terrible cost alone, but flooring is destroyed by rat & mice problem. Roof is peeling off, there's holes in walls, and almost every single window is broken. Toilet is rusted and is in dire need of replacement. This is all coming from memory alone, but I'm sure you get the idea, tear down may be worth the cost, considering subject property is 2bd 1bth. All this being said, the owners main advantage is this property was Inherited. He owns the property free & clear, but still pays holding (taxes). From this rehab, he rather put it on the market and make a return on profit, splitting the deal 50/50.

With story and details out the way, I will admit I have only done one deal so far being a new investor (owner is aware), and that is still in progress. Current deal is probably going to be a whole-tale. The San Antonio property is in a C-D class neighborhood, so I am stuck whether it is in fact actually worth the tear down, or just throwing some lipstick on it for the market (with its current condition I imagine paint/landscaping won't budge our ROI anyway). If the tear down is a more favorable approach, should we keep it a 2/1 or be different from the neighborhood making a modern 3/2? I suppose with this side of the equation it is probably best to discuss with a realtor who knows the market better than I do, but would appreciate anybody's advice on any part of this opportunity. Also If anybody can recommend top investor friendly Realtors in San Antonio, please do! 

Thank you BP family, Nathaniel Ortiz.