So at the moment, if you buy a property now and operate it as a 30 day rental, owners are not having any problems with the gov't.  

How do you plan to operate it?

There are more passive ways to invest in real estate than "turn-key" real estate and achieve those types of returns, but you will need vet the operators and get educated before jumping in.

I started operating the property in mid-2023.

@Matthew Drouin had a great reply:"Typically 50% of revenue is going to go right to operating expenses on small multi family. 

In this case, you would draft an operating agreement that specifies each partner's role—your friend providing the cash and you handling the rehab and management—and that profits and ownership are split evenly.

You then take the cash-out and buy 1-3 more properties and get them operational.

Does the operational company already exist and have income history?

Sounds he’s not interested in going through the rent up stage and being an operator.

@Marcus Stokes, house flipping is a full-time business operation, even with current market conditions.