But in my lending days I did a lot of participation mortgages with small developers.. were I would fund 100% but I took upside .. it was risk but we made some spectacular returns..  

You will always have your good memories there.Most of the time it's best to sell and start fresh, especially with a divorce. 

Secondly, I understand very well how the process goes - borrow the money for 6-12 months, pay out interest monthly, return it at the end....but I actually have no idea what this deal looks like in real life. 

You need to know if the buyer submitted tax returns, W-2’s, bank statements etc.Realize that an fha buyer can Not sign a purchase within 90 days of the date You bought the property, or it will never be funded.

In my experience, investing out of state in a single family or small multifamily is fraught with risk:1) You won't be an expert in the area (unless you've lived there)2) You have serious tenant risk (1 bad tenant can ruin years of returns)3) Good quality, small asset property managers are tough to come by

Logan Petri and when are you going to return to Indianapolis?

If you bring in passive investors, you could set it up where the equity gets a base return (say 10%) before splitting profits, then you, as sponsor, would take 40% of the remaining profit and the investors take the other 60% (in addition to their return of investment and preferred return).Depending on Oregon law, you may find an LLC to be better than an LP (or some other structure). 

Plus it should be much cheaper overall.The only catch, at least in my case, was that the commercial loan still required a personal guarantee - meaning full doc loan (bank statements, tax returns, etc). 

As a community i bet we would all crowdfund a project with a quick turnaround (3-6 months) in between our deals for a reasonable return (5-10% depending the experience of the developer)2.

Im looking at the lower streets the closer to downtown the better, Im looking for multi family basically something in a nicer area to develop a building for good rental returns...Do you have any good suggestion right around the half million mark, preferably with approved plansThanks!