If they are making so much money why are they not being responsible to do what they say bi am shocked so many people involved in this but I am not alone.

U need to flip the return  75% to the money and 25% to you if have any hope of finding someone to do this that is not friends and family.. 10 to 15% is way to little for the risk of being a gap funder.. if the project does not work gap funder is the one who loses money..

It had better be a great deal to be worth dealing with all this headache and taking on this risk. 

The longer the development cycle, the more risk on the LPs, the higher the return.

You could also try to find a seller who wants to do seller financing and take a risk on you, which would be challenging to find.

That may keep your cashflow the same or even lower it a bit, but you have 4 assets that are appreciating instead of one, 4 mortgages that are getting paid off by the tenant, depreciation and you diversify your risk in 4.Regarding the tax question, you may want to talk to your CPA about that.

If I have a JV with other investors and we need to pursue legal actions, I always involve the other investors when interviewing attorneys.

There is no seasoning requirement involved since the property isn't a short sale and it isn't someone buying REO from a bank with a seasoning requirement.

Obviously there are risks if I get laid off and would loose all the tax savings and be paying out of pocket for the property, but are there other things that I should consider?

It sounds like you have an un-permitted unit, which is essentially always a risk since there has been no notice to the AHJ that it exists and they can therefore initiate a code case to have it removed in most cases.