Owner financing a buy & hold when rehab is required

[Dave Vona]

I'm looking for suggestions anyone might have on creative financing/owner financing a home that requires $50-60K in rehab. I would prefer to see if I can do a buy and hold with this property as opposed to a flip. I understand how the owner financing part would work if there was no rehab, but even if I had the funds to do the rehab, how would I turn the home into a rental and recoup the rehab costs in a reasonable amount of time. The only approach I could come up with is to use a private loan but, unless that loan financed over a long period of time (i.e. 20-30 years), paying the owner his P&I plus repaying a 3-5 year loan on the rehab doesn't seem like a viable option. Does anyone have any experience with owner financing when rehab is involved?

Thanks.