I'm having a hard time understanding if I could profit off Renting the house and Airbnb the cabin with a little work.

Probably $0 down payment.He'll offer you below market rent so that he can then rent it to someone else and profit off of the difference.

I run a non profit that helps people find work at no charge, maybe I can help.

If I can make it work, it would save me a substantial amount of taxes.I would then plan on taking those funds (profit from the flip) and either (a) investing it in other self directed eligible assets (RE, LLC interests, etc.) or (b) transferring it back to a traditional brokerage firm and to simply invest it in equities.  

How can you produce profits when your financing options have interest rates that are much higher than those offered by banks?

Honestly that looks like $20k +/- profit.

If a property appraises, it doesn't matter what a seller has profited on it. 

If you're looking to flip, you can get very large profits in your area, but you'll be hardpressed to find cashflow. 

We wanted to split the profits 50/50 and divide up the closing costs separately, but aren’t sure what a good split would be??

I am helping some friends with their non-profit organization that provides a place for families to stay while visiting someone at the local university.