He will basically just put money into my account and I will purchase property, do the rehab on it and then when it is sold we will split the profits 50/50.However since everything will be in my name it will look like I received all the profits at the end of the year when taxes are due.I know we can set up a partnership or create an LLC where we are both the owners....but he does not want to do any "extra" work.

And you are right the extra space is always nice.

First, make sure the property was converted to a triplex legally - i.e. all permits were pulled and there are three separate electric meters.Providing the property is fully occupied and the renters are all paying and current it should make it easier to wholesale the property to a landlord.

Do added stress and extra repairs make it not worth the time and money?

Disregarding any fees from the city for permits, what might I expect to pay psf for concrete and labor?

Can you convert it to a 4 - yes and you will probably need to pull permits.

Am I right in understanding the new law will make the returns much less due to extra fees for loan company?

(or as an extra negotiation tool for you.)

You should really assess what you goal is with respects to real estate investing and think about how a law degree will affect that end goal (extra tuition cost, time, etc..)

Trendy high end condo type houses would logically command a higher sales price, and even if the profit remains the same, I'm sure the properties will move extra fast if correctly priced.