We worked out a deal to get the work done for $75k, and they would get a bonus on the back-end when it sold (another $75k), contingent on timeliness and completeness.Everything went great at first.

If you have enough cash flow, you can weather the storm and even purchase discounted deals during the storm.I wholeheartedly agree cash flow will survive all downturns and the bonus of tenants paying down debt.

But at 75/25, it changes to 65/35, accounting for my extra money, but also his bonus percentage. 

After that, any roommate amelioration of your expenses would be a bonus!

Any extra cash flow would be a welcome bonus. 

We estimate that the remodel will be $230,000 because of the high-end finish, and the transformation from a 1,200 SQFT home into a 2500 SQFT home.

But at 75/25, it changes to 65/35, accounting for my extra money, but also his bonus percentage.

These jobs are often business graduate students that gets      ~ $15 bucks a hour in Silicon Valley and a bonus for successful deal making.

I'll be sure to mention your name to get that referral bonus for you. 

The way I see it is the rentals I am looking to purchase will generate cash-flow and any appreciation is a bonus.