Help me structure this deal please!

[Aaron Chasse]

So, I have found a property that a guy owns free and clear. Right now, his stance is that he wants to sell the home for $79k. He is willing to hold a mortgage, but wants $20k down. ARV is in the $110-120k range. Sale also comes with an empty lot next door ($5k value) Everything needs updating, and possibly a new roof (havent seen the home yet)... obviously, based on the above info, this is not a great deal.... but, my though is, instead of using my $20k down, we find a way for me to do the rehab with that 20k, and then we sell the house, and split the profit. But the profit would have to be based on a lot lower price than the $79k.

Can anyone see a win-win in this? Anyone structured a deal like this?