I know that I stand to make more money per renovation by just paying for the work, but I'm attracted to the idea of partnering with him for a few reasons.

I'd rather use the money to buy another property(s).....

Although, banks have their place, private money is for a specific purpose and a specific type of investor. 

The rest of the money sits in cash in the opportunity fund.

I read on here that it is a waste of time and money to pay any site for help and there is plenty of free info on the web.When I try to google for this free info or lists all I get is sponsored sites trying to sell their programs.

Were you able to get any money back for unpaid rent and legal fees, etc?

I lost money, hope you don't!

He has owned this property since 1999 and still owes money on the mortgage and we are interested in learning of a way to benefit the both of us instead of me using an owner occupied loan. 

If you make sufficiently large orders they will give you discounted pricing like a contractor saving you 10-20%. 4.

It gives you flexibility to do what you want with the money.