If you feel you would get a BIGGER return from the kind of deal you described, ask yourself why an investor would want to give you that extra money rather than keeping it for themselves.

That's a lot of analyzing for someone with no money.

The flipper sold for a delta of over twice his declared expenses and I suspect made significant money on the his ADU addition (but was not hands off). 

Maybe they would even be interested in lending you the money to make it a performing asset again. 

You are just having them spend money in an attempt to trade realized tax deferred liability into tax deferred liability.It depends on what they need/want. 

If he/she doesn’t, they don’t make money.

I'm not a huge fan of the 3 way split - if the current owner is going to retain the properties, but you are going to rehab and manage them, and then you have another person fronting the money to fix them up.  

He is now starting to complain about gas money and needing to fix tire.

Def is a competition between investors looking for deals and families that have the money/time to do minor live in renovations, I see it everyday- people offering 15+ over asking and then some because the market is so wild. 

It is a gigantic money pit.