Also, any profits you make is subject to split 50/50 with Phil.

If you aren't taking any profit on the performance other than a total of 5% for managing, then that seems better. 

Most of the time they are just looking to get out of their current home either because they are moving for work or they have found a another home that they simply do not want to miss out on.  

Typical profit for turnkey provider 100K property is at least 20 - 30k  minimum.

I am a gap funder to a company I have part ownership, question is how do we go about paying off the gap so I don’t get taxed for my own money, just the profit I make.

My question to you all is: how profitable do you think a house hack should be before you consider it a good deal?

She is simply asking for a receipt so she can prove her rent was paid to whoever she needs to prove it to.I think you are making a bigger deal out of this then it has to be.

It you are simply repairing it without doing the above its more likely a repair and currently expensed.Another thing to take into account if you are buying a new property and fixing it up before you rent it out - those costs may have to be capitalized since you are getting the asset ready for use.Please let me know if you have any specific questions.

Rather than figure it out from scratch, consider partnering up with a local wholesaler that has closed deals and split the profits on your first deal. 

My investing partner and I both have our own separate LLCs, but we want to partner on a deal 50/50 and both have visibility to the all profits/costs/expenses in the bank account.