Fourplex, triplex or if it’s all you can find or afford a duplex.If you don’t have one create a budget.

How do I balance these two scenarios so I'm getting what I'm worth, but also creating value for my investor taking a risk on a first-time flipper?

I am most interested in working in real estate to build a business, create passive income, and eventually invest to help others build their businesses.

*spare me the "you shouldn't go into business with friends" talk as we have a strong friendship and understanding amongst each other

You need to put that cash to work to create true wealth and create cash flow.

. :)  he had a company called California Wrap even.. and it was those transactions and many other Ca investors like my dad that then created the All inclusive Deed of trust.. to facilitate sub too in a much safer manner.. its a great document folks should google it.. its what we use to transfer title in CA on a wrap or sub too. 

To fully cure the encroachment, you will likely have to file a new legal description for both properties and reset the boundary lines, or create new parcels with the encroached areas.All of this can be dealt with - but it's going to take time & money and most importantly, cooperation between all the parties. 

If you have a mortgage on the property, not repairing might not be an option, and than there is ordinance compliance, that could create issues with leaving the property abandoned, may require rebuild or site clean up.    

In assessing the use of equity you must also understand that due to the opportunity value of cash buying cash flow with equity to create artificial cash flow is extremely expensive.

Yes Robyn - we have access to this category in Florida - and they are typically 'off-market' deals... we can narrow parameters once we get to know each other better (matching goals to available properties, and creating a strategy.)