Each additional sale builds the reserve to pay cash and self fund my deals and cutting down Uncle Sam from an almost 50/50  partner to a 75/25 ratio is quite a perk. 

I have already identified areas where the expenses can be cut back a few grand a month and the rents are definitely below market value, but I want to buy based off the current operations.Any Cincinnati or Ohio investors have any advice on this deal?

utm_source=search&utm_medium=internal&utm_campaign=books (books recommended by BPers)Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.Feast on the Podcasts, #askbp Podcasts, blogs and webinars Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational, thought provoking ideas relevant to REI.

With that being said and your post requesting a focus on partnerships, here are a few things to consider as you move forward.1) Do you need a partner - or are you simply looking for accessible forms of investment capital that will allow you to acquire properties with minimal hassles, given the underwriting requirements of most institutional/Fannie Mae lenders. 

utm_source=search&utm_medium=internal&utm_campaign=books (books recommended by BPers)Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.Feast on the Podcasts, #askbp Podcasts, blogs and webinars Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

In most jurisdictions you can not simply do as you please.

utm_source=search&utm_medium=internal&utm_campaign=books (books recommended by BPers)Before making your 1st REI purchase please visit the link below for some useful tipshttps://www.biggerpockets.com/renewsblog/2014/12/19/real-estate-investing-success-smart-tips/Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.Feast on the Podcasts, #askbp Podcasts, blogs and webinars Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

If we are an LLC with 50/50 share of equity and cash flow, can the silent partner take a 75/25 cut of the tax gain/loss? 

Since your preference is buy and holds plus flips, I added the below links for your review of these REI niches. http://www.biggerpockets.com/renewsblog/2013/01/04/how-to-rent-your-house/ (house rental guide)http://www.biggerpockets.com/renewsblog/2013/02/22/buying-rental-property/ (how to buy a rental property)http://www.biggerpockets.com/renewsblog/2014/01/07/flipping-houses/ (step by step guide to flips)To be more successful, you simply have to work on the other elements to progress your REI pursuit.

If you want a bigger cut from your friend I'd suggest you consider an LLC instead of being a lender.