Here’s my issue: he says he wants the profit of anything I make on the deal if it’s anything over $25k so that he has “skin in the game”.

Say you raise the rent $100/mo and your tenants leave, but you were wrong in your market assessment. 

Since I live in an expensive area, and since I don't plan to leave my full-time job right now, I've been focused on turn-key and other passive strategies.

This means you can potentially pull $75k from the deal and leave 25% equity in the property and benefit from the cash flow/appreciation. 

The downstairs will be vacant at the end of March and that will leave both units empty.

The main reason I decided not to do it myself, for now at least, is my reluctance to leave my full-time job.

If would be easiest for this transaction if I personally closed on the property, cut the $30k check and signed for the $500/mo (or whatever) mortgage, then informed him that he owed me $15k and $250/mo for the next 30 years.Then as rent checks come in (let's say 6 units at $800 apiece, so $4800/mo made out to the LLC), the LLC would pay the mortgage (-$500), the property manager (-$480 at 10%), set aside funds for maintenance/capex (another 15% of gross, -$720 in this example), any applicable utilities, taxes, insurance, etc (say another $500), that leaves us at 2600/mo. profit.

I'm happy to leave that to a bigger operation.

But I was already leaving so I decided to file a complaint with the HOA instead.

Rents are $17,700  with tenants paying their own utilities and total costs are $12,030 including the mortgage payment.(10% management $1770, 5% vacancy factor $885, maintenance $885, lawn care  $900, 10 % Cap ex $1770, Payments $5820)This leaves $5670 dollars a year in cash flow for a ridiculous 56.7% cash on cash return!