That said, all my developed buys for investors are in MSP ancillary markets because NO their is 0 1%-2% properties in the Twin Cities market and IF you find one it without factoring the mountain of reno work it needs. 

@Ben G.I read your article, and pound my fist on the table with new investors when I tell them to stay out of the lower-quality areas.

I am a family guy with a little bit of business sense that will do all I can to protect my investments and keep putting food on the table at home.

All of the truth comes out at the closing table.

You can try, but just know you would likely be leaving money on the table. 

I would like to have some creative solutions to bring to the table rather than put the onus on him (although he has done many partnerships before).For example, would it make sense for him to take a note back and a lien on the property to cover my 50% (e.g. interest-only, 7 or 8%) during the rehab, then convert to a traditional 30-year payment (with him) or re-fi my portion (with a lender)?

If all he is doing is raising money, anywhere from 15% to 40% of the GP is fair, depending on how much you are bringing to the table in regard to experience and expertise.

Private money tends to run from 8-12% with 0-1 points (again, it can be more of less, but that's what I'm seeing a lot of investors finding).Of course, your experience, how much money you bring to the table, the quality of the deal, the relationship you have to the lender, etc., can all play into the cost of the money, but those are some rough numbers.

Any other ideas/options that could be on the table here?

All the equipments, medical tables, beds, are already there(considering they've been there for a long long time) but none of them seem to be impossible to move around if you hire the right pros with right money, but it will be definitely a hassle for both of us.