I was wondering how conventional loans work when in a partnership.

So I could do work on the boiler to make sure it's as efficient as possible, make sure all the radiators are functioning, and make sure the thermostat is always set to a reasonable temperature. 

We took the second floor to the studs and rearranged some walls to add a bath and make a bedroom for functional.

It's taken a lot of time and energy to get the property functioning correctly.

For the most part they are looking at safety issues such as making sure all fire/smoke alarms and carbon monoxide detectors are functioning and interconnected where if one goes off so do the rest.  

The Cap rate is a function of your net income and property value.

I know that every deal is different, but here are a few questions that I have:When working with a builder, is it typically better to get a price from them for a complete build-out or negotiate a partnership with profit sharing?

Houston is humid and oversized doesn't always work well...on the other hand....a buyer doesn't want to spend an additional 5k off the bat (5k is a little high especially since he will have the luxury of shopping around with a functioning unit).

So you have a partnership with the LLC?

There is also the private money and partnership route if "traditional" financing is an issue now.