The income from the project is 125 to 150% of the debt coverage, principal, interest, taxes, insurance and other direct loan expenses, like ongoing assessments that may be required.

The only ones that I have seen that you are talking about is if someone is borrowing an ongoing line of credit instead of borrowing per property, and that usually only happens after a solid track record and years of borrowing.

You're ignoring a lot of ongoing costs....vacancies, repairs, maintenance, capital expenditures, etc.

Termites are an ongoing problem, not just something you can treat once.

Rentals are longer term investments so if you go that route make sure you have an operating agreement in writing, have similar expectations on investment horizon, both parties are okay applying for and being personally liable for the mortgage, etc.Fair on a rental property will vary but at the least you should get a ~7 to 10% management fee on-going, a $3 to 6k GC fee (GC would charge a 15 to 20% mark-up if you outsourced) and maybe even a lower cash contribution to still have a 50/50 equity split ( if your numbers are right your partner is getting 50% of your immediate equity gain of $35k).It sounds like you have cash ($50k to buy) and the experience to rehab.

There is an ongoing lawsuit between the family and the power company.

James, From the looks of it these deals will likely not cash flow much (take a look at the 50% guideline) especially once you factor in repairs and on going maintenance.

You'll need a board of directors who have some expertise and have no relationship to you (family or ongoing business relationships).

I planned on going to developer and try to sell them my option but I honestly don't have any expertise on this whole concept.What would you guys recommend I do with this?

I've built these relationships over the years to where I know have a steady supply of deals that come my way so I typically don't have too much 'downtime' with ongoing projects.Since you have an abundance of time, you may consider doing some of your own marketing to locate your own deals organically and really be able to find some deals with huge equity...