lots can go into this somewhat simple question and most of it is personal preference.- you'll want to define "best", and what that looks like for you as a success.- How much money do you have to spend?

I tried to create rapport with the owner over the phone but waited to present my real agenda only in person.   

I personally do three types of lease options.

If you make the person an LLC employee you can get around it, but partner does need to be careful. 

Yea this is a long-term personal play more than a strict STR deal. 

This will allow you to remove the person and do the financing on your own.Home Equity Loan/Line of Credit: Since you're looking to access equity, a home equity loan or line of credit (HELOC) can be a good option.

Non-recourse has less personal exposure, but you need a very strong balance sheet to secure this without bringing in a KP.

I got a deal on labor as I know the contractor personally and helped out a bit with the project.

Not talking about you personally.

Gator most of the risk is on the person providing the earnest money.