When I first interviewed(phone) with one of the owners everything looked great and communication didn't seem to be an issue.

Now here comes my issue I have 2-3 clients/ family friends that want to partner with me, they would put all the capital required to do a flip.

Another issue in this market is when you are in competition putting nothing down versus someone who is putting money down or paying cash, someone using a VA loan will probably lose out on that deal. 

How do they handle CX on self-transactions (big issue for you as you plan to be active like I do)?

Bigger discount rate (60-75% of note principal balance) will apply to notes that are: new note, no payment history, low interest rate under 7-8%, long term (over 15 years), paperwork issues (dod frank compliance for ex.), undesirable markets, long foreclosure states, and few others. 

This is like a forced savings where these funds will accumulate until you need to make a Capital Expenditure (roofing, replace hvac, road work, etc).Getting private money lenders at 4% for 6 years is very unrealistic.

Not just on this issue, which she has right to be upset, but to everyone that comes across her.  

My only issue is I'm in a smaller town (30,000-40,000 people) so it's been hard for me to find deals like this.

I am having issues estimating how much to put aside yearly for Vacancies and Cap Ex repairs.

I'm concerned when you say you only have enough for down payment - you may have but haven't mentioned....you have to have enough for closing costs and major repair issues too.