If they have a tendency to not show up for work, or worse – disappear in the afternoon, it can significantly impact the profitability of your project.

Then you have to buy it right, manage it even better, and still find a way to turn a profit.

Plus I've yet to see any property that's actually profitible when purchased based on "cap rates in the area."

The Cap Rate is an indicator of how profitable a property is before leverage.

Should I sacrafice a few thousand in profit and use a seller's agent?

Buy closing costs: $2000 (orig fee, plus all the other crap that shows up)Insurance: $500Inspection: $300Rehab: $7500Purchase: $92,500Total all-in cost: $102,800Holding cost for six monthsInterest: $3000Second insurance: $500Utilities: $600Taxes: $1500Total hold: $5600Total investment: $108,400Loan: $87,500Cash: $20,900SellPrice: $125,000Commissions: $7500Sell closing costs: $2500Loan payoff: $87,500Sale proceeds: $27,500Less cash investment: $20,900Net profit, pre tax: $6600That's taxable at ordinary rates.Your low money costs help vs. hard money.

Can the profits and losses be distributed somehow without a partnership.

I do not like to buy properties that need more money on rehab than I anticipate to profit.

Thanks Jon.Is there anyway to go about it so the buyer doesn't know that I'm actually making a profit?

Your contractor is going to want to walk away with 5% profit minimum on a commercial project, or 8 -10% profit on a residential project.