Creative Flip Option

[Carlo Palomino]

I am thinking about a creative flipping solution and was curious of other people's thoughts and experience here. I have a single family house that I am interested in purchasing that needs some cosmetic work.  I have a good friend of mine who is a GC and is looking for a new place to rent. I came up with an idea to purchase the property and have him make the cosmetic fixes over the next 3-5 years. I pay for the material, he does the labor. He pays a slightly discounted market rate on the rent. In 3-5 years when we sell the property, we split the profit 50/50. Has anyone done a deal like this? What are your thoughts on a deal like this? I feel like I am protected as long as my friend does a decent job, which he is incentivized to do. Trying to think of all the downfalls on this idea. Thanks!