(sellers request also, but my preference also bc nobody knew each other, the mark up/fee/my profit.

Take the profit and go buy a bigger office building (that could handle 15-20) units, or an apartment building if you don't mind residential tenants.BTW, she does not want 10% equity, otherwise she would put 20% down and buy the building herself.

To really maximize your STR profits, you need solid year-round demand.

Update: After 3 years of owning this property I decided to sell it, through forced appreciation and a natural boom in the Ontario housing market was able to sell for $424,000 and walk away with a $200K Profit (Tax-free due to principal residence).

In the end we ended up selling for $235,000 made a decent profit and that was that.

That can kill the profitability of a focused strategy of flipping.This is a very specialized niche. 

It's their money, they can fund whatever they want...If what you're really asking about is hard money loans, yup it's hard for a $30k loan to turn a profit that makes it worth the time. 

I agreed to take over the home payments, invest in the rehab and split the profits.

On top of a great profit, we learned the process, made a great relationship and still use some of the resources that the developer introduced us to.

Go find it and we can help you find a way to get into it without paying tax on the profit from your building sale.