One of the deciding factors is will I have to pay 20%-25% in property taxes if I roll the profits into a new multi-family property? 

At the end of it theres a 50/50 split on the profits.

This is abpossibilirt though if there is some margin. 

We form an LLC (or TIC if that is better) and I do all arrangement and he gets t still share profits with no active work on his part?

Raymond Hill Everything the debt service and PROFIT!

Share the profits.

Hi @Chris Mason narrowing down an strategy is exactly what I'm trying to do that's why I need to gain more knowledge about this subject, I'm a very analytical person and just like playing chess I like to analyze all the scenarios, always thinking 1,2,3,4,5 steps ahead then set up all my pieces  in place and then go for the checkmate (In this case landing a good deal, lowering my risks and maximizing the profit or cash on cash ROI). 

I have access to inexpensive money, however I would want some immediate income to pay off the costs of the money, and I know there's no way to guarantee this.3) I live in Hawaii, and worry that my distance will end up costing me all my profits.  

They are planning to sell it after 3 years when most of the profit will come from the extra 2M of the selling price.

@Juan Rosado, I am not from that area, but numbers are numbers and you can manipulate them a ton of different ways to justify a deal, but I always like to say "If you need a calculator to see if it is a profitable deal, it is too lean" .