An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provides support for the property tax appeals process.Additionally, it can help maximize renovations and improvements.A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

I meant 10% down based on SD multi-family real estate prices.

Questions I'd have if I were in your shoes would be based around how the CAM expenses, management, taxes etc are going to work. 

Projected returns based on entry cap may be high but actually making those returns is very tough.

The profit should be split based upon whatever agreement the two of you come up with.It would be unfair for you to put in the majority of sweat equity as well as the training involved to have a 50% profit split.

payment based on performance?

You'll likely want to start with reviewing the requirements under Prop 19 for retention of the base assessed value when adding a child to title, and also look up the rules for a basis step-up at death. 

Here's a case study that would be dismissed based on your criterion:-Asset: Mix Use 11 Unit Building-Contract Price: $1.73M-Existing Rent Roll $15,800*Currently 1 vacant commercial space market rent $5,500 & 9 apartments all leased below market value (60 day termination provisions for each residential lease). -$650,000 Renovation Budget-Stabilized Rent Roll $25,400-"As Complete and Stabilized Value": $3.45MThat's a recent MLS deal in a B+ Philadelphia location with a credit tenant that's been there for 20 years in the occupied commercial space.

@Katie BustosWhen you buy a home with a rental unit, like a garage apartment, how you're taxed can change based on how you use the property and if you rent to family or others.

Conduct an Internet search or call your favorite title insurance company to confirm the following:Federal Tax Liens Take Priority Over Superior LiensOne exception to the lien priority rule occurs if you owe an unpaid tax debt.