I ran into this problem in the crash of Bay Area prices in 1989 to 1992.. at the time all of our loans were fractionalized.. normally the co bene's had no problems making a decision together and moving forward..The issue came on a loan I had on a high end home ( in the day it was valued at 2 mil) on Green st in SF... first was a BOA  at 900k and we were a 200k second.. the market if you recall in the Bay area in those days crashed 50%... so we had 4 bene's 50k each.. 2 wanted to foreclosure the other two said I am not throwing good money after bad.. the other two could not buy out the hold outs.. and they let themselves get wiped out... this with a property that would have rented even in those days for north of 5k a month and would have cash flowed.. but no talking them into it, they all got extinguished when BOA foreclosed them out...

We have all lost big dollars on one's that were so trashed when we got in them to be non salvageable.. and like Brian says you MUST be able to throw one away and income average and do some volume to make this work.. and again as Brian has stated I have seen many loose lots of money if not their entire life's savings thinking they were going to play with the big boys.

throw it into our next quad and our new "loan" on the quad would be this houses payments + the loan we would aquire for the quad. 

I am wondering if I should be paying him $10-20k in profits because that is the percentage he would be throwing into the rehab-(man hrs).

@Brian TracyIf you are dealing with a true multi (5+ units) and not a residential property (1 - 4 units) with conjoined walls, then it would normally be valued based upon income / cash-flow and not comparable sales.In your situation, even if you are dealing with a 3 - 4 unit residential property, I would determine its value based upon the cash flow it throws off and base any potential offer on my analysis.  

If your undercapitalized and have no real money or real ability to do a refi.. then its extremely dangerous for the seller.. unless we are talking about low end throw away type properties were the seller has given up and could care less if they lose them when you can't perform for any number of reasons.

You could even throw in some discounted or free rent at your triplex to sweeten the chances for low out of pocket cash.

I'm just throwing numbers nothing concrete but just for a reference.

Anyone can watch, and audience participation is encouraged.

Yeah, send like the verbal method is more sensible when throwing out offers.