Without knowing your goals, I assume you're looking to keep costs down for profit margin purposes.

If I can’t get that and can sell for a handsome profit that is probably what I would do.

Took me 3 years to find South Atlantic bank but man are they great to me.. allowed me to scale our operation in Charleston and be more competitive on buying infill lots since my capital is cheaper than most that have to use hard money or split profits.

I know I am missing something here, but it seems like this could work and I could profit $75K for engineering the whole thing. 

I would consider providing the capital for a couple notes and allowing the other investor to keep a chunk of the profit in exchange for being able to really learn the process. 

@Csilla Veress A couple of books that may help with understanding PV (present value) calculations, as well as note investing in general, are:Invest in Debt by Jimmy NapierPaper Profits by @Joshua Andrews  (my personal favorite)This blog post by @Mike Hartzog may also be helpful:https://www.biggerpockets.com/blogs/5359/41924-doi...PV is the way most note investors do pricing for performing notes, but for non-performing, you'll want to build an ROI calculator as  @Chris Seveney suggested so you can look at various exit scenarios and take into account costs like servicing, legal fees, insurance, etc. 

We have a great communication with them and all plan on learning a lot.SO.On this deal, we are purchasing to fix & flip, then giving the investor a percentage of the profit (plus a small interest % on their money while we flip).The deal is:Small 2b 1ba housePurchase price $42,500ARV $103kRehab costs ~$25k (mostly cosmetic, like new kitchen/bath, also new windows)Which keeps us at 75% value.

However, when investing in new construction you will lose return at the expense of the profit the builder must take.

I got an opportunity to work as a custodian part time at non profit close to home then began to work my way up to full time employment with the ultimate goal of getting my hands on a stable income and benefits plan for myself and began working on my road to returning to education and financial freedom.

It may be legal to have him but Id find a way to legally profit off the Mongrel .