Since then I decided to bring on a partner (who's happens to be a realtor) to share in the work load, expenses and profits(50/50) and also hopefully use his financials combined with mine to procure another construction loan.

Since this a foreclosure, we’ll get the deal for $400K for both apartments (instead of the combined appraisal of $786K)My friend expects to sell the lot for $600k in the next 6 months, so after taxes and all fees it will be $180k profit but we’ll have to split between the 3 of us.

On the other hand the owners of the LLC are taking a larger risk but have the potential for more profit.

With 3 pieces we weigh each one as 33.3% and then we divide profits/losses by the prorata share contirbution.

What margin of profit are you looking to make if a deal is presented to you?

In a small number of those cases you may loose a bit of money evicting someone that would have otherwise paid most of the rent but it will pencil out to a higher profit margin over the long term.

Some precautions to consider:- Make sure the person who is the borrower of the underlying bank mortgage fully understands the implications  of a wrap, as well as the buyer- Consider a 5 or 10yr balloon note (vs. 30yr fixed) if you are worried that the seller may have 2nd thoughts down the road- Buyers should need to bring a significant down payment to the deal so that they have skin in the game- If your state allows a Deed of Trust for the wrap note, I suggest using that document (vs. a Mortgage) as it will put a lien on the house allow the Seller to pursue a non-judicial foreclosure if the buyer does not perform.- The home insurance after the sale (the new owner is the "insured") should retain the name of the previous owner(payor of the bank note) on the insurance as "additional insured" so as to not set off any alarms with the bank.- Use a 3rd party loan servicing company to collect all mortgage and escrow payments and make all appropriate payments to the bank lender as well as seller finance lender.   

I have been actively looking for profitable deals here in the greater Cincinnati area.

Even then, there's an ongoing debate about the benefits (or lack thereof) of Series LLCs.Once your flipping becomes substantially profitable - as in $50k net after all expenses - then an LLC with an election to be taxed as an S-corp should be considered for tax reasons.

I am not saying don’t pursue whatever you are trying to do with investing but personally pursuing knowledge as a newbie is the highest ROI you can get in my humble opinion.