Can he?

Can he deed me the property?

Once Robert gets the possession of the property can he not work with the county/city and show them that indeed the property is being rented as a Triplex.

Can he use the VA benefits to purchase this property?

Can he claim repairs or utilities on his tax return to offset any rent monies he collects?

If your rehab took twice as long it's because you didn't know how to manage it properly, and if your contractor overcharged you or did a poor job it's because you didn't have the knowledge to question what they did, and know what they should have done, get multiple bids, etc etc.You should absolutely use all of the resources here to educate yourself, but you should also seek out some horror stories in the forums to get some perspective on how hard this business can be and how easy it is to lose your shirt.So the first thing I would ask your friend is how much money can he afford to lose?  

Can he then deed a quarter of the property to each of us? 

How can he avoid the $150,000 tax on his capital gain?

Can he sue my company for the taxes or is the lien  just secured against the house? 

Can he advertise and promote referral bonuses or finders fee's for distressed properties?