They will be "active" legally speaking as voting rights, but really playing passive roles. 

(a) A landlord is liable to a tenant or a governmental body according to this subchapter if:(1) after the tenant or government official or employee makes a request for information under Section 92.201, the landlord does not provide the information; and(2) the landlord does not give the information to the tenant or government official or employee before the eighth day after the date the tenant, official, or employee gives the landlord written notice that the tenant, official, or employee may exercise remedies under this subchapter if the landlord does not comply with the request by the tenant, official, or employee for the information within seven days.

How much does geography play a role. 

To abide by the terms of the contract, the seller must sell the property to the option holder if and when the option holder decides to exercise the option.A right of first refusal grants the holder of that right the right to purchase a property at a price to be determined later, at the sole discretion of the seller, before the seller accepts the same offer from anybody else.

The house needed some work which I did while i lived in it during the lease period, then exercised my option with hard money bridge loan and sold it for much more than my option.

@Jeremy Houser -  Just make sure you guys go through the exercise of discussing plan A, plan B, and plan C if things go wrong. 

The operating agreement would spell out the roles, contributions and profit splits as well as lots of other details.You generally would divide equity and profits parí passu in accordance with each partners contribution of time and capital.The best thing to do would be to meet with a real estate attorney to go over this and draft the partnership documents.

It’s a matter of clearly defining goals for the business, size of acquisitions, futre growth, target markets etcNext would be defining roles, capital contributions/expectations, decision making process and equity and profit splits.These are just a few of the main issues to map out before meeting with the attorney as they will help you with all the other detailed legal and estate issues.

Also, if you don’t mind me asking, how was your success with purchasing at a great price, I’ve attended a few and the numbers get driven up ridiculously My understanding is you can't get reimbursed for just anything, say you go and remodel the kitchen, you'd be out that money if the right of redemption was exercised.

Running the numbers. . . that's the exercise you/we need for everything.