It's very hard to say if a 50/50 cash flow split is good without seeing the numbers for the project.

We already paid them a pretty sizeable entry fee ($30k) to cover some of their equity and debt in another project.

The city wants to tear the property and surrounding properties down Zillow said it’s worth 38000The city offer me 13000.I could use some adviceHard to give advice with limited information, but as a general rule, the longer you wait and the further down the line their project is the more valuable your property will be to them.Zillow (and all automatic online) estimates are very unreliable, so don't base on that.

@Diogo Candido Wow very cool you are doing the same type of project i am looking to go into!

However, as we delved deeper into the project, we realized that a complete remodel would be more beneficial.

How much upfront costs are typically involved in a project before you know if it's a viable project to pursue? 

I have flipped 30 houses, including having 10 projects going simultaneously, one of which sold for $1.8 million.

However, as we delved deeper into the project, we realized that a complete remodel would be more beneficial.

This is the biggest part of the project.

Use tools like AirDNA or Mashvisor to provide market data on projected rental income and occupancy rates, and make sure your lender works with appraisers familiar with short-term rentals.