Typically, I would base the profit distribution on the initial capital contribution, but I am not sure if that is equitable in this situation as his skills will likely be needed more often than my skills as an attorney.

Unless you can do almost no down payment or you want to sell the properties for a profit, then I'd say pass on this one.  

@Josue Velney then those contractors arent very good businessmen . ( unless they are holding first position on a note)   Trusting a person or company to pay after you have  $ 50 K in materials and another $30K in labor plus profit .  

Hello BP -I'm a real estate broker here in Long Beach, California and I have a client that would like to sell his condo rental, that is paid off, and do a 1031 exchange for a larger multi-family property.

Too many partners is when the profits of the company are not justifying the cost of the partnership. 

@Michael Stanley NinoDo yourself a favor and invest passively alongside an experienced investor who can put you in a much larger investment (100+ units).

Yet, should I just hold on to this Bay Area real estate making modest profit?

.$100k loan amount is where lenders stop seeing any significant profit, $50k is where lenders start to lose money by doing the mortgage at all.

Learning & practicing the math is critical for finding a profitable deal.

Apparently, the ginseng root yields high profits.