I think we've arranged a great deal with her... it's a 50/50 profit split where she provides the finances and we manage the entire project, from using our own guys to subbing out to other contractors if need be, to designing the final product to SELLING IT for NO COMMISSION!

All of that are possibilities, depending on how you arranged the deal.

You need to look at the HOA bylaws/operating arrangement and I expect they would be available for any listing. 

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

You're under no obligation to arrange your life plans around the tenant.

Would this arrangement run afoul of related party restrictions?

I recommend one further breakdown...the $1614, split (annually) between maintenance, major repair, and PM fees.Once you have isolated the PM placement fees, you/we can assess whether or not it is causing the property to be unprofitable (or if it is something else).Placement fees vary by market and by PM (uncommon in my market).I recommend working with your PM or another one on a compensation arrangement that better aligns interests than placement fees.It will be hard to make a profit with a 60+% expense ratio. 

Any major damages, they can get after the movers.One plus in this arrangement is I have spare fridges in the event one goes bad, either mine or the tenants.

My buddy said he can arrange for me to meet them pretty easily.

I barely was able to arrange to get the carpet cleaned in time!