Linking with a partner, unique idea. What do you think?

[Vincent Plant]

A co-worker agent of mine approached me with an idea the other day that I am sure is full of investor pitfalls. I would love to hear the ideas and critics of the pros. She buys a habitable house through FHA (minimizing the down payment). The house of course would be in bad shape but FHA obtainable. After settlement she moves in and lives there while I begin to rehab the home piece by piece over the course of 6 months or so is using my own cash. She pays the mortgage and resides in the property. After the improvements are complete, we sell the place. She moves out. So she buys for maybe $100k, I dump $30k into it maybe. She sells it for $175ish... I take my $30k back, she takes her closing costs back. We split what's left. Looking for feedback and brutal criticism to explain why this is a horrible idea (other than the insane amount of trust involved).