I also do consulting from time to time to share how leverage and build a profitable holding company or fix/flip entity.

In an oversimplified view, revenue of $1,000 and expenses of $1,000 offset to $0 and you made no profit...yet.

.: Quote from @Theo Hicks: In ideal conditions:Pref equity receives higher ongoing distributions but no profits at saleCommon equity receives lower distribution and profit at sale (assuming their is cash flow left over after pref equity is paid and assuming their is profit at sale.In non-ideal conditionsPref equity may receive ongoing distributions less than pref, or no ongoing distributions at all, but the pref accrues.

Take a look a look at the RPAWi. org, which is our local non-profit landlord association located in Milwaukee.

So there is no discount or profit to be made. 

Perhaps you can barter that for experience and, perhaps, a taste of the profits and then, later when you're capitalized, do what you're suggesting but now with experience and skin in the game.

I have found a few deals on the market lately for some clients that flip, the numbers still gave the flipper a profit and the rehab time was 5 weeks.

Even if your GC is decent was able to get your job done in 100 days, if it doesn't resemble the comps in quality then your 300k exit is now 270k and with all the exit costs and holding costs your 40k expect profit is now under 10k. 

I use the "profit first" approach to cash management and am VERY happy with what it has done for me. https://a.co/d/h16sPxR

Would I pay for all the remodel expenses and then 50/50 split of profits or does contractor pay remodel cost?