If one partner puts in more money than the other, you could change ownership interests, you could treat it as a loan, you could reduce income/profits from the non-contributing partner until the contributing partner is paid, etc.You will want to discuss with each other who will be doing what management functions and whether that is worth anything to you both.

Partner with someone that will find a great cash flowing property, will manage it themselves, and split the profits at the end of the year. 

He wants to put his $200k profit down on a huge fancy home (to make his wife happy, I’m sure) and pay a mortgage while working a 9-5 the rest of his life.

You want to have control of your investment ensuring it is as profitable as can be.  

If there a "Legal Aid" non-profit group in your area maybe you could contact them for free help or contact a lawyer.In my State, I believe I could evict for illegal activity because my lease says that I can.One of the problems with illegal drugs is that the landlord could lose his property if someone is dealing there which is unfair, in my opinion, to the landlord. 

The way I’m looking at real estate is pretty simple, buy a property, rent it out for more money then the expense of owning the property is, make a profit.

Try looking at:How to Find the Right Turnkey Real Estate Investment Company for YouandThe Best Types of Markets for Profitable Turnkey Properties

I am struggling to see cash flow and any profitability. 

Profit margin, proximity to home, and the fact that it was mainly just cosmetic renovation.

If you've lived in the primary for at least 2 years you should be able to exempt the first $500K of profit tax free.