I had a similr issue a few years ago with a property in Cleveland where my property manager hit the same roadblock.

Verify its condition and ensure the seller discloses any known issues.

For house flipping, consider an LLC taxed as an S-Corp to reduce self-employment taxes by taking a reasonable salary and the rest as distributions.

Sponsor is doing a capital call and pausing distributions as they have a loan coming due and realize they need $3M in order to refinance the loan.

If you're not putting anything in, then I'd expect that your friend would want to get all of their capital back before you start splitting up the distributions.

Pay your utilities out of this account, and after the month has ended, you can distribute your cash flow from this account to your reserve account and your personal checking account.

I've had some not happy when I have asked them to split it out.I've tried asking questions to the IRS customer service reps, and didn't have the best luck.While I cannot cite a specific official guidance on this issue, I consider debit cards exempt.

You would only pay taxes on all passive investments in a traditional SDIRA at distribution, unless you have a mortgage, then the portion of the income derived because of the mortgage will be subject to UDFI (unrelated debt finance income) which will trigger UBIT (unrelated business income tax). 

Then the remaining profits get distributed at whatever split you both agree to...I often see it start at 25/75 (75 to the person in your position) and then maybe increase it to 40/60 or 50/50.It would really help if you could provide some numbers on your deal. 

Class midwest issues.