Great Deal, or should I walk away? Creative hard-money deal....

[Garen T.]

I needed the services of my handyman on one of my units this week. While doing the work, he started to tell me about a remodel he's working on, with the owner in a tough financial situation, and would I be interested in buying this property. Health issues have caused a situation where the owner is now 2 months behind (taxes due this month) and can't afford to finish the remodel. There are no tenants in the home right now as they were moved out for the remodel. Home is in a B+ neighborhood. 4 bed, 2.5 baths. After remodel, probably in the $450K range. Houses in my area are in huge demand and the supply of 4 bedroom homes is very small. I live in SW Washington State. 

Her current debt (to be verified) on the home is at about $180K, and she owes my handyman $35K for work done so far. He estimates $5K to finish the job. I've been told she would like to walk away with at least $100K profit, but this has not been verified. 

I'm in on a few projects right now, and would rather not leverage the funds for this, but I could just buy it from her in the $350-375K range, and look to try and sell it in the $450K range. However, she is under contract with a realtor and if she sells it to me, and then I sell it again, I'm looking at much of the profit potential going out the door in realty fees and the taxes on the sale. 

So, I'm thinking about offering her this deal. 
I'll pay the past due 2 months of mortgage. I'll pay the taxes. I'll pay for the next 2-3 months of mortgage. I'll pay the remaining work that needs to be done. I'm estimating that if I triple the amount of work left to do, I'd be out of pocket about $23K. 

This $23K would be treated as a loan to be paid out in escrow. There would be 4 loans to be paid out at escrow. 
1st Mortgage= $155,000
2nd Mortgage=$20,000
Remodel=$35,000
Me=$23,000
Total of the above is $233K

We would then sell the house for an estimated $450K
Sales commission (5.25%) = $23625
REET (1.1%) = $4950
Title (estimated) = $2000

That leaves net profit - $188,224

Of that, I would expect $50,000 and the owner would take the $138K

Questions
1. Is this a well thought out plan? My risk is so minimal, and there is tons of upside, for everyone. 
2. How do I protect myself. Do I put a Deed onto the property for the $75K in case things go bad?
3. Are there other options to make this come out. 

Thanks!!!