Do you have a specific $ amount of profit you are looking to make on the deal?

Once the loan is paid off it's 8600 minus taxes, insurance, maintenance, and reserves and the rest is the profit.

I'm very new to the idea of Real Estate Investing, and am driven to make it profitable while working full time.

@Joshua Ryan Meador if you do not have sales experience, having a large sum of cash in the bank will make your transition to real estate a little smoother. 

The remaining cash flow or any profits from a planned sale would be split amongst the investors and you and your partner in a pre-determined split.

Instead of selling my townhome and using the cash to fund my next deals (my assumption is a sale would leave me with a profit of between $50-$60K depending on final sale price, fees etc.), I am considering using my equity instead via a Home Equity Line of Credit (HELOC) to fund the next deal.  

Run raw land comps, adjust for demo and profit and see if I can make an offer and sale it?

As to your questions, it *might* be that your market like many around the country are just truly NOT profitable when ALL costs are considered.

They care about what the deal looks like, is it profitable in the event they have to take it back. 

so basically I am looking for my first deal. Found a house that looked like it was half way flipped with a for sale sign. Called the number and a lady answered, she said her husband had a heart attack and can not fini...