The house needs some TLC and they cannot really afford to pay for upkeep or repairs.  

Re: Also, when we did the rebuild on my home, we used a local general contractor who used a manager, and she was worth her weight in gold.  

I do not have a professional firm acting as the PM for this investment as it requires little upkeep. 

We couldn't refi for holds and retail buyers for our properties were starting to have trouble getting loans meaning that our properties that were finished and ready to go sat as dead weight while we were trying to liquidate.Our $100-200/month cash flow on our stable properties couldn't support the debt service on the vacant/unfinished properties for very long and we ate through our reserves pretty quickly while fire-saling everything to make our private money whole.The 20/20 hindsight is that we sold our best properties early because we thought we could weather it out with enough cash and prices weren't really dropping.  

Condos are lower upkeep.

This is much easier than attempting to compute the weighted average of an underlying mortgage and the amount of equity financed. 

Being that you don't know him that well - the potential of $3k in profit does not out weight the risk of injecting $10k into this deal. 

Quick answer is...When ever doing something with someone else… Outline clearly what each person’s responsibilities are… Most if not all problems that arise will come from disagreements or one party “not pulling their weight”…Also, make a giant to do list… then assign “who” and what “time frame” the items are to be completed.

It's possible the appraiser could weight the value indicated by the income approach more, but I typically see appraisers putting more weight on the sales comparison approach regardless of what approaches were developed.

It's usually ordinary income, but if you ended up keeping one of your flips for a rental at one point, you pay run into capital gains/losses when you eventually dispose of it.