On the other hand, if these are in terrible areas, you introduce a different kind of risk. 

Add in community involvement any way you can.

It's really hard to predict where regulation will go and it is indeed one of the risk factors for all investments.

I may explain that while I’d like to buy/finance/invest in his property, I need to earn a certain return on my invested capital for the given amount of risk, and if not able to earn the return on the subject deal than I will on the next deal.  

Additionally, when comparing whether to build a single family portfolio or a comparable multi-family portfolio, you should also keep in mind the transactional costs involved.

Looking to see if anyone has a basic template of an operating agreement for a business partnership of two parties involved in the fix and flipping business?

Moves risk to be financially covered by insurance hypothetically.

Storing things.Even if the appraiser risked his license by not calling the bathroom out (why would an appraiser take that risk?)

I have done extensive research in the risks, how to structure such deals to mitigate those risks as effectively as possible, and legal considerations of each strategy. 

Begin practicing deal analysis to understand numbers, and consider house hacking as a low-risk way to start.