If you as an investor buy a home that you intend to rehab or improve in any way and will sell it to another person you must be a licensed GC.. or in Oregon you can be a licensed GC or Licensed developer like I am.So yes all these folks running around flipping houses that do not have either license are breaking the law and subject to some pretty stiff fines.So this OP I snot a GC but an investor and wants to flip homes.. he needs to have a partner like he is talking about that is licensed be part of the entity owning it.Now I have many partners here in Oregon and I bring them in as co owners of an LLC with the LLC owning the asset..

Many times appraisers will want to hit a number close to what the owner tells them because if the number Is bad they stiff the appraiser.

I'll still be a working stiff for the moment and since I work for the federal government sequestration is having a small effect on available positions.

What this means is that if any major and unexpected financial matter comes up her financial reserve will be to stiff you on the rent.

The problems can arise when you are the secondary and the primary gets greedy and shortsighted and tries to stiff you on the fee.

They may hit them with a stiff fine but if it's good, why would they have him tear it down?

That's a very stiff fee.If the lender will give you $48K for a deal like this then the HUD-1 settlement statement would show the $10K coming to you.  

I'm a regular working stiff.

An example is wire fraud, a common charge as brokers or RE types use depository accounts and money runs through title companies to transact illegal transactions.Before you jump out of RE, take some pills or have a stiff drink, might consider some more education. :)            

I understand what you are trying to do but it is highly unlikely in the current multifamily investment cycle to pull off such a feat.You want ultra high returns but low to no risk of your capital.The multifamily sector has been recovering for years and there is stiff competition from all cash buyers on value add properties.