The downside to them is that they would not get to participate in the overall profit of the project if it all goes well, but of course they also have less risk than everyone else.If they want in as equity investors, you should consider an LLC or a Limited Partnership (with the LLC as the general partner). 

Do not quit your job till you are generating enough in RE to make it worth your while .

Some people classify a primary residence as a liability because there is no cash flow (I personally see it as an asset) and unless you are renting it out you are losing money but everyone has to live somewhere so you might as well be paying down debt on something you can potentially sell for profit later. 

The flippers I lend to are making a good profit, even with hard money. 

For some buys it may not make a difference but if you are on a strict budget it could be the difference in turning a profit or coming across a big issue and breaking even/losing money.Good luck!

Their profits are all dependent upon getting people to pay more for stainless steel appliances and granite counters.

I'm sure we would make a big profit off it.  

His only concern is that the turnover is a little bit higher, but that may just be the area and not the type of property.His deal is still profitable because he's doing a lot of the fixes himself and the units are pretty nice.  

Unbelievable you found a  MHIC licensed contractor to work for 10% profit margins, after expenses he made a 7.5 percent profit margin?

If you were to sell your primary you might be able to get the profit tax free.