Hey everyone,
I’ve been listening to the Bigger Pockets podcast for about 6 months now and have saved around $20K. I’m using this time to learn, build better money habits, and continue saving. My goal is to buy a dup...

No, this arrangement does not qualify as interest. 1099-INT would be wrong.This is a profit sharing arrangement, and the correct form is 1099-MISC.

My investors, which are just family members and are not in the LLC, they give me cash and in exchange I pay them a percentage of the profit after a house I previously acquired with said cash sells (buy, fix, sell).

I estimate total construction costs will be around $1.3M–$1.4M.His initial idea is for me to cover the construction costs, and then we split the profit once the project is sold.How would you recommend structuring this deal?

Let’s look at Indianapolis IN; (not my market, just using it since it is a popular place)  https://www.redfin.com/city/9170/IN/Indianapolis/housing-market for a median price of $250K That's the range you want to start out in, as a beginner.Then we assume 35% of ARV (After Repair Value) to do the rehab, holding costs, sales costs and profit.

They chase designer kitchens, luxury flooring, and features that look great on Instagram but add nothing to long-term profitability.

Quote from @Rob Howard: @Joe Villeneuve except that he can sell it at any time probably for a profit in addition to the cash flow. 

Welcome to BiggerPockets @Hailey BarnesFlipping is a great way to make a profit in real estate.

He's getting paid 30% of the profit rather than a GC fee...that's the headline.Whether you pay him a GC fee or you split the profit is not that relevant (assuming they are a similar amount). 

Cashflow is just 1/5th of the profit puzzle.