This just seems like it puts me in a potential bad situation if something goes wrong during the process.  

Go places where you can connect with potential buyers and sellers. 

Are there issues that you think you should avoid regardless of potential for discount? 

I do agree the lack of control is a potential issue.  

And What other conditions/terms/costs do you calculate when underwriting the potential of a deal?

It sounds like you’re in a great position to succeed, given your extensive renovation expertise.As a fellow real estate investor, I completely understand how challenging it can be to choose the right design elements, especially when you want to make a space appealing to potential buyers.

In efforts to get more experience with IOS, we are seeking a financial partner that potentially has experience with this asset class. 

It's interesting because of the low start up capital and potential for higher returns.

Make the offer appealing by highlighting the short-term ROI from his renovation expertise and potential profit-sharing during the partnership.

Seems like a property that isn't going to appreciate rapidly so cashflow will be vital to its investment potential.