But if you are paying rent of $1,500 per month, and then you switch over to a PITI of $1,500 per month, perhaps 70% of your payment goes to interest, taxes, and insurance.  30% might go towards principle.  

Yes, Yes, with proper deposits and built in protection with rent prices via maintenance reserves.This is one method we are considering rather than trying to find a flip to increase investment capital this year.Thoughts, considering low Cash on Cash but possible increased investment capital through equity?

I would make sure you have adequate insurance and hold your properties in an LLC to protect your assets.  

Can you think of any important information that I need to make sure is in the agreement for my protection as well as the sellers?

I am wanting to find out if this sounds like a good deal and if so, how do I protect myself on paper and ensure that I am legally entitled to my share of profits?

In the past I used Landlord Protection Agency  www.thelpa.com.  

This gives you the maximum amount of protection and allows for both partners to easily exit this deal.

Additionally, the fact that his company filed for bankruptcy protection in 2012 definitely made me glad that I didn't really take the book to heart. 

The purpose of title insurance is to protect you against problems from the past.2.

A general partnership is a big no-no in TX; there is no liability protection AT ALL in a general partnership AND you are personally liable for all actions of all of your partners including your own actions.