And then at sale their equity should be paid back to them before any profit is split.  

If his fixed costs are $4000 per month his profit just doubled from $1000 to $2000 monthly.

Are there "Turnkey" PadSplit options out there; I wonder if anyone has found a way to create this or if it would even be a profitable model. 

Especially in today's market.5-10 years ago, prices were so low that Turnkey companies could make a decent profit AND provide owners with a decent rate of return.Now, prices are up, it's MUCH harder for Turnkey companies to find deals and so their margins are getting squeezed - leading to more and more questionable Turnkeys and corners being cut.You should verify:1) The Class of the Neighborhood2) The Class of the Property3) The Class of the Tenant pool4) What was specifically rehabbed5) How good is the quality of the work6) What was NOT rehabbed7) How well was the tenant screened8) How well has the tenant actually been performingIt's often in the best interest of the Turneky company to be vague or even hide all of the above - to get the highest sales price possible:(So, have everything above verified by an independent 3rd party, NOT someone recommended by the Turnkey company or anyone connected to them (agents, etc.).It's often better for YOU to find a rehab, have it rehabbed and then place your own tenant - or YOU to screen & hire those you outsource to.BTW this is all regarding LTRs.MTR's & STR's Turnkeys are even MORE suspect!!!

Way too much.Here’s why: points directly eat into your profit and ROI.

Many “successful” BRRRR projects are successful on paper only and never turn a profit.

They believe they can pay me 13% interest and 4 points for a loan and still be profitable. 

I specialize in finding profitable foreclosures, fix & flips, and STHs.

This allows you to get started at an affordable price point, you should always have a rent check coming in, we have local property manager partners in these communities that can handle repairs, unit turns, and rehabs, we have the other team members you will need to make an informed and profitable investment, and you should be able to shortly refinance out our downpayment and go shopping again.

I’d suggest reaching out to a few local property managers and learning how they operate day to day, what systems they use, and where issues tend to come up.A PM's job is to maximize owner profit and property value.