What's the right approach?

[Jack Cushing]

Not technically a BRRRR. Closer to Rent, Rehab, Refi, Buy, Rent... sell?

Neighbor recently widowed. Yearly property expenses $17k. No income. Squatter son. House that needs love. She owns. Under 60 no benefits, and her savings are disappea ring.

My pitch to her. I'll deposit 5 percent toward the principal of an agreed purchase price. She would be seller financing to us. This will give her cash. I'll pay monthly lease payment, on a 1 year to 5 year option. This will now give her income to cover her new rental expense. After first year I have option to sell, or buy. During the 1st year I will Rehab with my Heloc. I could rent out, and cash flow $500/ month for 4 years or use my option to sell and buy her out of agreed amount plus 30 percent of value add. If i purchase after option there will be no cash flow, so feeling like it needs to be flipped. We could always extend the lease agreement for longer if it's working out for both parties.

In the end she'll be getting market value for her home but allow me time to build the equity for us. I'm flipping someone's property but buying in at the beginning.

What's the BP's communities thoughts on this approach??? Do you think this is fair? This will be my 3rd deal. All said and done, I'll make closer to 90k to her 430k