It would still be risky if I need to cash in quickly to put skin on a deal within a short time frame.

they have no skin in the game and nothing to lose. 

For example, if the purchase price was $200K, you'd borrow $150K from the bank and the owner would finance the remaining $50K in second position.The lenders will still want to see some sort of skin in the game. 

He knows I am looking for my first real deal and he wants to help me get off the ground.I am willing to make some concessions in order that we split the profit in some manner knowing full well that I have no skin in the game currently and the rehab would in fact be giving me work for the winter months.Currently work is slow and steady (tis the season) however I am the sole bread winner in a family of five so I need to consider the impact on my family should I be willing to give up too much.

. - Wholesaling is also still a good option if you can find deals, because there's no skin in the game.

Since you have skin in the game you should be able to find something.  

And finally, no doc & no money down lending by banks/brokers meant many had no skin in the new game.

You could wait until this appreciation occurs and then try to get the neighbors to clean up their act for a minute so you could sell it, but (even putting ethics aside here) a remotely intelligent buyer would be asking about the neighbors, past issues, etc, since there is a shared wall.If you really think the area is about to appreciate (and you have corroboration on that from outside parties with no skin in the game), could you work with the owner on his price (given the issues with bed bugs and maintenance), with the understanding that you'd basically be paying a premium to gain control over your prop value and own two props that are likely to appreciate?

Being generous you'll get $5K per year out of this property (that's assuming that your equity partner will split returns evenly with you even though you're a rookie with no skin in the game) and I wouldn't bank on that.  

Even though you are qualified for 400k, most lenders want you to have "skin in the game."