@Account Closed Thank you, good advice. After I posted, we actually decided that the deal is too thin, as you suggest. But I'm definitely looking. This deal would be a lot of work, and a lot of labor for $20K profit each after tax. I'm more interested in a higher price point = higher profit. I'm a little confused about a couple of your points (Which are key!): So, I'm floating the cash, but we both pay the HELOC interest? The contractor (pm) uses his own funds and labor time to do the remodel and we split 50/50 profits? So while he's using his own time and labor and materials costs (which they CAN do,) I separately pay them a salary? It would seem to me that my giving them access to the deal (ie purchasing it) should either give me a premium on profit, or negate the need to pay them salary. Not trying to be greedy, just trying to iron out issues before they arise.
Also, side note, I need to investigate taxation on flips. I know it's ugly....