It complicates things.

@Nik DivakaruniYou are making the whole deal a lot more complicated just to provide the convenience of the buyer saving 5.5%.

This complicates the partnership as it dilutes the value I can bring by assuming the risk.In my experience so far there are HML's that also fund the rehab and some that do not, so how is it any different in underwriting's eyes if I just never take a draw with an outfit that includes the rehab funds? 

This can be as simple as one person or company lending money to the investor for a flat interest rate, interest and points (like the hard money scenario), equity share or as complicated as a combination points, interest and equity share.Using private partners is also an entire training class all by itself, but at the bare minimum we want you to make sure if you are using a private partner that you both agree in writing before the transaction to all terms and a definition of profit if you will be splitting profit.

As @Steve Vaughan wrote, its not that complicated. 

However, it gets more complicated, typically portfolios have either a premium or a discount added to the value depending on the diversification of the portfolio as well as the overall condition of the properties. 

Every avenue looks complicated to me being new at it.

If there's just 6 right next to each other and you can get to the basement(s), it might be more feasible.If the current system is too complicated, might be worth considering to:Split out the electrical, upgrading service and adding min-splits for heating/cooling. 

Also,I know several articles suggest 14 days can be done without being taxed then after that it seems to get complicated with taxes.

If not, what complications do you think could arise that could make this a disaster?