If that's your plan, then you'd have to come up with a very detailed Operating Agreement stating everyone's responsibility to avoid conflicts and/or questions down the road as to who's responsible for what in a partnership.

Sometimes this alignment can be fixed with a simple conversation with a very good attorney and the city's attorney.The real question is will it be worth the expense and potential discrimination that could follow from the city - I have heard stories where the city will have their inspectors get very rigid when they do not get what they want to make the owner's life more difficult. 

When the cost of money rise (higher interest rates) cap rates increase. its simple investment fundamentals.  

Develop and operate?

Please click on the links, give them a read, and share your thoughts in the comments.First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp The second is a post that will help get you focused with your real estate investing goals:https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciatedThe last one is a post that will help you choose an “investor friendly” real estate agent.

Your seller isn't motivated, plain and simple.

I know that is simple but true.You could use a HELOC and use the cheaper money for multi-family property that flows more than enough to pay the heloc.

It takes a lot of WORK to find, close, and operate deals even if you outsource some of it. 

I have not made any efforts as to cash for keys or serious improvements because I am a small operator that does his own work.

Our attorney explained that although we are profiting a small amount as the contractor, we are also members of the LLC, and will be essentially in charge of running the whole operation and should be compensated accordingly.