Renting out neighbors guest house for them

[Zachary Williams]

Hello--

I am trying to break into real estate investing and feel that I have a small yet profitable opportunity basically in my backyard. My neighbor has a guest house that he has not taken care of and they currently just use it as storage or some extra space when their family comes over. I would like to get it fixed up, with me doing most of the work and them financing most of the rehab and rent out for a positive cash flow. Then once rented out give him a percentage of the rent(because its obviously still on his property and includes his utilities, etc), but how do I struture the deal and present it to him so that my neighbor sees the benefit to him, but I get the majority of the long-term cash flow. If you ask why haven't they done that for themselves my answer would be they are unwilling(lazy) to take the time to make the guest house look presentable to rent out.

Any and all suggestions are welcome.

Thanks for the help.