I would never accept a tenant on the promise that they will "quit" smoking without considerable skin in the game.

You didn't say what the price point was, but 20% down would generally be adequate skin in the game and enough to cover repairs if you end up getting it back. 

You want to keep this mixture off of your skin though..

And the 10K can be used as your contribution/skin into the deal.

Better to have the legal framework in place by a knowledgeable professional with zero skin in the game, than to have an ambiguous setup that costs several thousands to unravel.

However, many portfolio lenders will want to see skin in the game so you may have to put some cash down regardless of how cheap you buy it. 

Typically the developer (often called the sponsor) will be required to invest some portion of the equity to have skin in the game.

You must have thick skin in this business, some call me a skin conditioner!

Haven't been able to get financing because we can't put skin in the game, so we gotta get creative.Our plan is to talk to the seller about doing seller financing, with the seller paid their interest (and the principal, of course) when the property sells post rehab.....so that would take care of the seller.  

If they are, the have some skin in the game to make this project a priority.