You will need to have a 1065 partnership return filed for the new LLC but this will help account for the 'tax savings' etc. for future use.

We are really interested at this point in going into a deal or two as a money only partner and banking or reinvesting our returns.

Two years tax returns if you are on 1099, yes it is harder but that is how it's done

That is a 10.7% return for the $135K investor not including principal paydown. 

Objectively look at the potential return vs risk before proceeding.

Unfortunately, it will most definitely get you a negative return on your investment.

He states you shouldn't purchase a property unless it cash flows $200 per unit and has a cash on cash return of 12% of more. 

If they don't ask for more info, they aren't interested.An "after the deal was done" spreadsheet I did for an investor is at https://www.biggerpockets.com/forums/600/topics/58...Every deal is different of course, but you want to look for a Safe investment (cash flow or flip, etc) that has returns that are greater than they can get in their current investment.

I borrowed the money to buy the unit and i have to return the money within 60 days(thank you family for the loan and giving me oppertunity). 

I hate asking for help without providing anything in return, so I'd prefer NOT to do this, and it seems bad form to offer a small fee to them, but if it's recommended, I'll do it.I appreciate any and all help regarding this matter.