To let that profit wither away in a plain old .05% bank account seems like leaving money on the table where it otherwise could be put to use.

All your cards are on the table. 

Hey ChrisI think the question you need to ask yourself in this situation (where your equity partner is bringing 25-40% to the table...the down payment basically), is "what value do I bring to the table?"

Seasoned investors actually seek out and depend on wholesalers who provide research and bring value added deals to the table.

If it had been a water line, and since water lines are always under pressure when the water is on at the shut off valve, then the leak would have been consistent whether or not the bathroom had been used or not.

We received the new tenants move-in checklist from his agent and it states that water leaks from the ceiling when the tub is ran in the upstairs bathroom.

I do have a bit of cash I can bring to the table  which should help in partnerships, but not quite enough to be bringing all cash to the table, nor do I want to bring all cash to completely drain my capital.

Instead, mix a solution 50/50 alcohol & water or vinegar and water.I'm in Calif and the house has a Western exposure w/o shade, so to reduce the heat load, we added a tint to the outer pane which reduces the light transmitted into the room.

The house is said to be worth about 370k and the house doesnt seem to have any problems with the water, AC, or heater.

If you're testing the waters, just buy adequate insurance to protect yourself until you have a proper legal structure.