Tax on the payback of the loan in 2 years is the only drawback but the 10% at the end will soften the taxes you will pay.Make sure they have skin in the came also. 

You May have to share a % of equity with him but he will have real skin in the game then. 

A true TK will have their own PM team.... full skin in the game. 

during 2008 there was no such resources as BP.. everyone was out to save their own skins.. banks were failing .. etc

They'll want you to have some skin in the game (~15% of purchase + reno) and you may have trouble if you've never done a flip or BRRRR before.My gut tells me this doesn't work as a BRRRR, rent is too low.

The family had foreclosed on another home in the past and couldn't get a mortgage, so by structuring a 3 year lease option, they rented from us but treated the home like it was their own because they had skin in the game ($5k deposit and paying slightly above market rent rate).

The family had foreclosed on another home in the past and couldn't get a mortgage, so by structuring a 3 year lease option, they rented from us but treated the home like it was their own because they had skin in the game ($5k deposit and paying slightly above market rent rate).

Hello, I've always been a stock market investor and am trying to educate myself on real estate as an option to diversify my investments. My initial thought was that I'd like to have '5 doors' to buy and hold with the ...

A ton of different ways to skin a cat!

So that they have a little on going skin in the game if they feel it is truly a good deal