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

The general rule is: to anybody who was paid by you for services (work) or who received a profit distribution from you – if he received from you a total of at least $600 total during 2023.

What do you do with the profits from the company to avoid income taxes.

Determine the most likely sales price of the build (factor in the cost of the land also) and include all selling costs to arrive at your net profit and ROI. 

Some buy to park money, others do 1031 exchanges or they simply buy them for a tax write-off. 

And would this be considered "capital gains" since it's re-sold under 1-year therefore having to pay a large % of tax on the profit?

Ownership and profit-sharing can be split based on contributions, with you possibly earning equity through sweat equity.

Are they profitable?

If the damage is minor, again I think the tenant can simply claim the quality of the appliance was poor and they have the door-seal quality issue to further back up this claim.

Best case under such circumstance is they find alternative financing and simply over paid for the property.good luck