@Dan Barli I'm trying to get the general process straight first before I make connections.

I want areas that are good for cash flow now and also are starting to show signs of turning for the better or have the potential to turn around.3) Being younger and not having a ton of capital yet.4) Being able to buy owner occupied and take advantage of better financing/seller assists compared to buying straight investment properties.

Her income from a straight up loan/mtg would be just be taxed as ordinary income.Her income as profits from a flip as a partner would be taxed as ordinary income Plus likely self employment tax (15.3%).Of course, she needs to talk to Her cpa.

When we saw the home a few weeks ago, I let the owner know that I was a Realtor, and gave him my card, so he has been notified.I do not plan on purchasing the property through my brokerage; looking like it will be a straight FSBO transaction (they are hiring a lawyer on their end).Is there anything else I need to do to make sure I am going about this the right way?

I’ve only used a catch-up once, in a blind-pool development fund where there was a straight profit split but I built in a pref with a catch-up just to give the investors a safety net if the fund under-performs.  

If you want to help them, You pay a couple of hundred bucks for them to sit down with Your cpa of choice.....they’ll get it straight and you get some good will (and stay out of legal trouble).

I haven't personally used him as my evictions have been straight forward enough that my property manager could handle it, but he's the one who actually wrote the standard lease for for DelREIA and is recommended frequently by those folks who have more complicated landlord tenant issues to resolve. 

If you want the straight scoop I'd reach out to @Amber Gonion

It was pretty straight forward What was the outcome?

Go straight to jail, do not pass go (Monopoly game reference).You don't need to lie about it.