Advice putting together a deal

[Mike Downing]

Extreme creativity needed in purchase of property.... 1960 single family purchase price of est. $550,000, instant value of $675,000.... ARV of $850,000 after cosmetic only $40,000 rehab. Would rent for $4,000 which would cover mortgage. But this is where the creativity comes in. The house is 60 yrs old and original but in fantastic shape. And what I am proposing to the lady that lives there who is 88 and has zero cash. Is that I buy the house but rent it back to her at a great deal and let her stay there as long as she likes. The property has an extreme appreciation upside, and rising rent upside. One of the best school zones in Texas, very rich area.

She probably pays no more than $1,500 in monthly taxes and insurance.  So I have thought that it could be fair to charge up to $2,500 in rent, and just take a loss of $1,500 monthly. 

She owns the house out right, so I have been trying to think of some sort of owner financing that is a win win. I have access to $250,000.  I was thinking I could offer her a higher price for the home but do a zero interest rate, principal payment only(maybe like $2,000 principal monthly), with $150,000 down.  

So far we have kind of just discussed that she would like to have cash, and I have made the suggestion of me buying the house. She showed interest but is skeptical.  So I am trying to put my best foot forward first deal wise.  What is a good realistic win win that would be attractive to her.  I get the feeling I might have one shot at this.