@Jonathan Taylor Smith - this is one of the things that confuses me- how do you make a profit if the seller owes more than it’s worth?

HOWEVER; they cannot obtain financing (it's a non profit and they don't have ability right now to finance) They want me to keep in my name and they will make payments for the next year, and do all maintenance, etc.

It has a $16.90 Cash on Cash return and could increase my cash flow $373 on the conservative side.My question is, how do I split the profits with a private lender?

The contract states, "Seller _________ agrees to pay a consultation fee in the amount of 50% of the profit to ___(me I know)_ for the sale of this property."

I would then take my profits from the construction business and put them back into my rental business.I have a lot of plans, plans almost always change, and I’ve yet to do a single deal.

I told him that if any one property can't be profitable, then you could never profit from having multiple unprofitable properties. 

The other assumption or gamble here is over time the property will appreciate and rents will increase to a point where I no longer am losing on the investment.

The majority of areas nearby where I live are that way as appreciation has been going up very quickly and the rent will take some time to catch up.There's 3 ways you profit off a property: cashflow from rent, equity paydown of a mortgage and appreciation.

But I look at lots of commercial stuff like that that is a money suck if you have the capital to keep it floating for several years and may just then be profitable because you can sell it to someone else for a higher price.Now, if you can buy it for $200k on owner financing or better yet pick it up for back taxes then you have something.

My tenants have been in my properties a long time so I have been able to bank that money as extra profit.