The margins now were a bit too tight to make it work as a flip. but the deal still made sense from a buy and hold perspective.

Their compensation - cut, commission, profit split, trailer fee, "whatever you want to call it" - can be structured in many different ways.

We also have provisions in place where any one partner can stop contribution 'labor' (PM, book keeping, maintenance work etc...) and still get a share of the profits, if it is a matter of not wanting or being able to put in as much time but still interested in having the investment.Dan Dietz

How would you utilize $30,000 to create future opportunity for profit in real estate?

There is not enough margin here.

In selling this it would most likely be a profit of over 300k. 

I'm holding it until it's painless or profitable to sell, and focusing on things that make me more money in the meantime. nobody owns all homerun deals.

You could always start marketing for deals (using mailing / list services) and then partner with another local investor who can take has the bandwidth to take on your inbound leads and can handle negotiations, acquisition/exit strategies, contract administration, etc. in exchange for a profit split.

Also will IRS give him/ me tax free profit at the sale or how would that work?

I did not, I found the deal and did the work in exchange for 50% of profit.