There has to be some form of a written agreement on who gets what of the profit, who's in charge of maintenance, what happens when a partner wants out, who's on the loan/title... etc  I find it hard to believe that this person wouldn't just take this deal and run with it on their own since they are funding everything with their money and I won't be giving a dime.

But first, if you lived in that property for 2 out of the 5 years prior to when you sell it you can take the first $250K ($500K if married) of profit tax free - a much better deal than a 1031 exchange. 

Do the work nights and weekends. 4 months later you’ll have 40k in profit.

If you have a "partner" and are operating with a profit motive, by default you are a general partnership. 

HUD deals seem to be listed (usually owner occupant, non profit and government agencies for some period of time depending on the "insurability" of it) on the MLS.

What is a fair profit share with a private investor who will be hands off?

If it's an awesome deal that you don't want to lose, start calling any private lenders you know and see if they'd lend you the funds in exchange for part of the profit you make.

The only price that matters is the price that makes sense for you to make a profit that works for your numbers.

It just goes to show that when push comes to shove, any company is more concerned about profitability (as it should be, for it's investors) than about the status of any city it might "temporarily" be in. 

I don't plan on spending any profits the first year and plan to reinvest anyways back into turning the units and some much needed outdoor maintenance.