Need advice on a flip.. good or bad idea?

[Chris DeMello]

Aloha BP. Seeking some advice.. I'm trying to get creative with a seller on a deal. It's a 2/1 + a full unpermitted bath in garage. Owner inherited the home from his brother that passed away. He wants $260k cash. He has it on MLS for $299k. Comps are around $320k-$330 and house needs $30k for rehab. I know his situation because I got introduced to him by a mutual friend. He owes (according to him) $215k and is paying $2k a month rent on it. He expressed he really wants to sell fast to move to Vegas & he's tired of paying the rent.

I am meeting with him tomorrow to go over numbers. I was thinking of proposing the idea of partnering. Maybe paying him a down of $40k and going in on title as tenants in common. I'll pay mortgage payments till house sells. I'll rehab home, sell and pay him the balance of $260k - $40k - $8k (rent 4 mo) = $212k. If I go regular route and buy using private money there's no money to be made if he doesn't budge on price. This way we both get what we want!  If not $240k cash should be my all in number. 

That make any sense? or bad idea? On my 10th cup of coffee trying to figure out a way to make this work :) Any ideas or advice will be greatly appreciated! 

Thank you!! 

See what we gotta pay for in Hawaii?? lol