When you sell you get the first $250K ($500K if married) in profit tax free!

Know your resale value before you step into any purchase and make sure it will cover your expenses - including realtor fees, property transfer taxes, etc if you'll be selling it in a year or two - and then include the profit you intend to make too.I'd also encourage you to research mortgages from an investor's point of view. 

You have enough profit in the deal for it to make sense ( to you and an ivestor/ buyer )2.

Possibly, if they only take their fee out of shared profits of your deal.

The biggest determining factor of a profitable investment is a competent manager.

So how can I get us in there without destroying their profits through tax?

I hope this post encourages other people to work and in pursuing your goals.

We initially thought that the profits would be allocated in proportion to the amount of capital a member invested. 

Its eating into my other rental income profits and slowing my ability to have cash available for purchases when a hot deal crosses my path. 

- If we both don't sell, and we suffer water damage, it would be costly to pursue for damages, and doubtful that we'd get anything <-- neighbor's opinion.I'm looking for some advice or direction on where to go from here?