Example, my last deal, I didn't include an inspection contingency because I was taking it to studs anyways and had a profit margin of $75k, with everything getting redone. 

What are you asking for it price wise versus the profit margin?

Profits can be split based on the percentage of equity contributed plus your time/effort in self managing and being the boots on the ground.

Would you still recommend doing the llc as an s Corp if the expected profit was lower?

Maybe they made some profit or maybe nothing or worse...

You have to consider number of factors before doing this, the property would have to be appraised and would be added to your income for the year in which you make the distribution, likely pushing your tax bracket up.If you simply wish to get into self-directed investing you may want to consider truly self-directed Solo 401k, it has number of advantages over SD IRA such as contributions limits 10X higher, no need for a custodian, checkbook control, exempt from UBIT on leveraged real estate and more.

Podcasts I recommend: BP, Jere Metcalf, Keeping It Real, Profits Over Wages to name a few.

I hate to be the barer of bad news but financing you very first flip is one of the very worse things you could do simply because of murphy's law and if anything goes wrong with your flip you are still on the hook for paying back your loan and once you get a black make on your credit it will take years to erase that off your record if at all.

I did hear of another rule that said take the ARV x 90% to take out holding costs, then subtract repair costs and the profit you want and use that as max offer price.

My question is, how would we divide the profits?