The larger the purchase price the greater the spread you need between purchase price plus holding costs plus rehab cost and ARV.  40k projected profit on a 600k project is too skinny for me. 

roof? 

Good morning fellow investors, I am about to break ground on my first development project which entails adding 7 units on a lot that already has 2 units on it.

By this logic investing in a new roof also doesn't make sense.

If you go with the partnership route1) You need to manage the money going in and out of the business bank account.2) File a partnership return and be responsible for issuing K-1's3) make distributions to you and your partner for cash flow that you receiveYou will likely spend many hours on a nice gesture.I may want to consider instead to give a christmas gift or a bonus for early completion of projects.

The area seemed to really gain appreciation in the middle of rehab and boosted an ROI that was already projected to be strong.

Its a good thing they profited, because projects can go south sometimes and then that really hurts.  

Let me preface by saying I haven't tried this before, but I'm considering it for my next project.

I am building ground up so any contractors that do framing, plumbing, electrical, roofing, etc.

This includes all structural drawings, exterior drawings, framing plan, mechanical plans, plumbing plans, electrical plans, gas line plans, roof layout plan.I tried to work with a couple of firms and the pricing for all these came all over the places.I also came across a company called flip16.com (September Development, LLC)  who said they can do all of the civil engineering and architectural drawings work at a fraction of the price compared to those civil engineering and architectural firms.