Overall, it's been pretty profitable.

Is the time spent learning real estate and finding deals more profitable elsewhere?

Stationed there almost three years, sold with profit and tax break for how long we lived in the house.

Thanks Dennis, I think you're right that planning for a more conservative return would be a good idea.I re-ran my numbers at an even more conservative level:Lower ARV: $800,000Lower income levels (I'm assuming it will take a couple years to get up to full potential income, but giving myself 3 years was a conservative estimate):Year 1: 50k (NOI $1,000)Year 2: 80k (NOI $31,000)Year 3: 100k (NOI $51,000)My ROI numbers come out to:1% (year 1) 46% (year 2) 76% (year 3)This scenario seems like an acceptable risk to me, when the upside seems far more profitable.

Make sure both parties fully understand and agree on:How profits/losses will be split Who is responsible for what (e.g., repairs, management, communication with the seller).Exit strategies in case things don’t go as planned.When you do find the right partner make sure to create a joint venture agreement that outlines all of this clearly.

For active investments I advocate considering how you can diversify WITHOUT ceding your competitive advantage nor the superior profitability of the niche your in.As an example my business is running an investment fund and syndication high interest commercial mortgage loans secured by income producing real estate. 

Because your second year is likely (oops, I did it again) to show a net profit instead of net loss.

As a broker in a wholesale market, I "buy" a loan from a lender at a discount and mark it up for my profit.

Adding the current mortgage and utilities would be roughly $1,350 resulting in a profit of $650/mo.

In southern Florida I fund and profit / loss is 50/50.