Improvements tenant in place

[John Powell]

I’m planning on buying a house (under contract now) doing the major repairs and renting it out to a coworker who will be accepting the house in livable condition but who wants to paint interior (which it needs desperately) and paint cabinets From the 80’s (I’m planning on them replacing in the near future anyway) and is willing to allow me do some upgrades like redoing bathrooms and relocating the washer and dryer hookups while she lives there one project at a time. She is interested in doing a live in flip but is only one year from separating from the military so she isn't ready to take a whole project on herself. For this inconvenience I am going to give her below market rent 1100/month vs 1200/month and allow pets. Has anyone done this before? How would you structure the lease?

[Jeremy Gunn]

Sounds like trouble, I would stay away from this type of deal. Fix it up yourself and rent it to someone other than a friend, family or co worker.