Seller Financing for a Rehab: Lease Option, Subject to or other?

[Nathan Baumgart]

I have a fire damaged property lead that is owned by a few long term landlords. They have multiple properties and are interested in getting out of the fire damaged one.

Given their familiarity with investing and rehabbing I want to offer them seller financing so that they can get a higher price from me and potentially share in the profits. 

I would want them to hold the mortgage in their name but I would pay holding and rehab costs. I would pay them for their "lending" at a percentage rate or potentially give them a share of profits after. Property would transfer directly from them to the final retail buyer.

What kind of contract am I describing here? Has anyone attempted this or seen it work?

What should I be worried about or watch out for?

Thanks!

nb