I've talked to an individual I work with now, who has obtained several business licenses and has made the comment multiple times that I should pursue obtaining a license as well.

I'll talk to my QI on Monday but was looking for creative ideas and experiences here.

We've talked about roles in the project and writing a contract between us but neither one of us is sure the fairest way to split the profits.

I may talk to some of the property management people in my office and see what the opinion is there. 

Or just talk with @Bruce Runn.

Talk to Tarl Yarber

(You may want to talk to a local lawyer to ensure you are complying with local laws on this)This will have three effects, 1) it screws your unethical property owner  2) It protects your monies which you might get to keep after the foreclosure and 3) gives you leverage with the bank that is foreclosing.  

Maybe you should talk with someone closer than Utah - @Scott Smith.Did you watch his 109 podcast ?

Talk to @Scott Hollister as I know he is affiliated with a good HML in this area.

Insurance at $90/month sounds high on a property the type you're talking about.