A sub-lease and rehab deal structure

[Dave Vona]

Hi, I’m looking at a home that’s not been occupied for many years. I’m going to see if the owner is willing to sell, but I don’t think he will. It appears there is no loan on the property.

I estimate this property needs ~$30K of rehab for it to be ready to rent. I think monthly rent would be ~$2,000. I wanted to know if there’s a way to structure a sub-lease that would allow me to do the rehab, even though I wouldn’t own the property.

I thought if I was able to collect all of the rent for some period of time to recoup the rehab costs before I start paying the owner. If the owner wanted to sell the property after I fixed it up, I also want a way to recover the rehab costs by collecting some portion of the sale proceeds.

Does anyone have any ideas how this deal could best be structured if the owner was willing to sub-lease?

Thank you.