It's their money, they can fund whatever they want...If what you're really asking about is hard money loans, yup it's hard for a $30k loan to turn a profit that makes it worth the time. 

I agreed to take over the home payments, invest in the rehab and split the profits.

On top of a great profit, we learned the process, made a great relationship and still use some of the resources that the developer introduced us to.

Go find it and we can help you find a way to get into it without paying tax on the profit from your building sale. 

You would have to work out the math to see if paying the points and higher interest rate on the HML would be worth it of course, but if the value is there and makes sense from an overall profit standpoint, a HML could be useful to buy it quickly with the aim to Re-Fi it out as quickly as possible.  

You could flip that and make a tidy profit, but you'd be hard pressed to turn that into a profitable rental.

Get a good CPA because they can give you the best advice to maximize your profit.

@Ramon Flores The $200 a month is not profit.

I am partnering with someone and wanting to know what is a fair way to handle the split of profits.

When you subtract reported income from expenses there is only 3k profit per year.