You'll want to look into creating an entity of some kind to protect yourselves. 

Account Closed, Hi Minh, Thank you for your kind words and encouragement.

What kind of deal do you think I could come up with so its a win win?

What kinds of out-of-state deals are you looking for, do you know?

If they don’t want to manage property, then they might look into some kind of managed property or check out a DST (depending on qualification).

(Kind of reminds me of Columbus, which is growing even though Ohio has flat or negative growth.)Interest rates are on the rise, which is going to start showing up in the data very soon.  

Tell me more about the kinds of cash flow you get before and after a rehab and your CAP rates.

A deal that is overloaded with every kind of fee you can think of probably means that the sponsor isn't wiling to rely on performance compensation.  

@Dan Roma you have kind of screwed up.

These posts are helpful and I'll make I incorporate both throughout this process.