What is the best way to structure a Buy/Fix/Flip on a close friend's condo?

[Jeffrey Yates]

Friends of ours are going to close on a new house in approx 60 days, so they need to sell the small condo where they've been living. They've lived in this condo for 2+ years, so in order to sell it, they'd need to replace carpets at a minimum, which is a hassle for them. They're the kind of people that prefer convenience and ease, even if it costs them a few extra dollars. Other value to him includes my being flexible with timing of purchase to avoid any overlap on mortgages, and no need to fix anything or clean anything up (a big plus for them!).

Thus, my proposal: Sell me the condo at market value less cost of repairs, less realtor commissions (saving us 6%), have our RE lawyer friend do a “minimalist closing”/quit claim (saving us some closing costs), and then let me rehab, upgrade the floors and resell the condo at a higher value 60-90 days later. He gets the money he would have walked away with on a straight sale for no work whatsoever, and I get to take home the added value over cost of improvements.

I've done all the numbers (ARV, FARV, COR, etc.) and am comfortable with our margins.

Here’s what I need your help on, BP:

What is the best way to structure this deal?

My friends needs a good chunk of his net proceeds from sale of condo to pay for repairs on the new house.

I need at least some of the purchase price financed, even if only for 90-120 days (conservatively) until the time of the sale.

How can I meet both those needs as cheaply as possible? Maybe by giving my friend a lease option that explodes in 120 days with a downpayment equal to the cash he needs for the new house? What do you call that, a "deferred close with occupancy?"

Also, I’d like to minimize the transaction costs as the property is sold from him to me, because every dollar I save my friend by selling to me (vs selling to a 3rd party) reduces the price I pay for the property.

This is a true friend, so I have zero trust issues and am 100% comfortable with doing the initial sale as cheaply (even if it means unprotected, deed-wise) as possible, AS LONG as it doesn't complicate the eventual after-repair sale to a third party by me.

Hope that’s clear! Thank you BP!