However as you correctly point out this is far more risky and or its risk capital compared to buying a income property.. but the reward can be strati-spherically higher .. not just a little bit but it can be life changing profits on some of these deals.

110% profit Lessons learned?

Usually I lean toward buy and hold but that would be a great profit margin on a flip. 

How consistently has it show that it can be profitable. 

Our prospective numbers point to increasing profits as the deal ages with an eventual infinite ROI once the initial investment is paid off.

We back into the "strike price", meaning the maximum price we're willing to pay for a property, by starting with a conservative ARV and then backing off our required profit, the rehab cost, the time value of money (carrying costs and interest), and a contingency reserve for unexpected expenses.

Try looking at:The Best Types of Markets for Profitable Turnkey PropertiesandWhat to Ask When Working With a Turnkey Provider

Give them a portion of the profits from the STRs and have a buy-out clause when you have the funds to refinance.I am sure there are many other potential options for you to look into, but just off the top of my head these 5 came to mind.

Why not take the profit without the tax hit?

"How in God's name do they plan on making a profit" would come out of my mouth all the time.