They provide all necessary funds to get through a deal, including rehab costs in exchange for 50% of profit.  

@Jennifer Acalinas Many Investors that flip homes use the 70% Rule that says 0.7 x ARV - Repairs = Your Maximum Allowable Offer (MAO).

I'm also beginning to shift my focus towards that direction too and am eyeing the 50+ units.

I have been scanning through my local Market this evening , and am wondering what signs and specifics , help determine which Properties make for good Flips vs those that are better off just being Rentals .Alot of these houses that I could purchase with Cash are not in the best of areas, since my Cash Budget is only around $90,000So for me to be able to purchase a property for say $50 - $60,000 and put maybe $10,000 - $15,000 in it or repairs and upgrading , this leaves me with having to purchase properties in areas that aren't the safest.But my thinking is .......

Busted pipes could be $50 or it could be $15,000.

It's not hard at all to figure out a cap rate, or cash-flow, or some of the % rules you want to know off the top of your head.

There are markets going down right now. 50% of them are in the northeast and IL.

I'm ok when it comes to accounting... thinking I can get through it.Note: the LLC is 2 partners, 50% myself & 50% a canadian citizen.Any direction/suggestion welcome!

 $42,000 is not all that bad, I see some comps where other investors are buying from providers I have never heard of in the mid 50's ' low 60's.  

Frank if the deal and area is good and you can afford a higher down payment you might look at a 4 unit quad instead of a duplex.With a duplex if one unit goes vacant you have 50% occupancy.