I might have to get the Rehab done in different stages with different Contractors,so if your contact gives me an reasonable estimate,i can hire him for the work he performs.

So the first stages of looking up ownership/investors and writing letters to both parties seems easy enough, but I'm curious what this contract deal seems to look like.

Just discovered this site so I am in the beginners stage of learning about real estate investments.

Right now I am in the planning and learning stage.

Not only do you need a new contractor but may need someone to step into their PM shoes.Many owners have made these type casual arrangements work but there are inherent risks.A PM on the other hand is in the business of providing a service and also, I believe, has fiduciary duty to you.

The Rehab:During the first stages of the rehab we were living at the old place, and I was working on the new place every night after work 5-10pm, then 12+ hours on Sunday.

You will be sacrificing getting on with your real estate experience and holdings, but would be doing a good thing for aging parents and will have a good asset paid down and ready when you are both ready for other living arrangements.  

Mario, while it can be difficult to find someone interested in the kind of arrangement you describe, you also may not be legally entitled to any rent for a residential unit that does not have its own certificate of occupancy.  

That contract arrangement would be void.  

This has been their arrangement for almost twenty years (the tenant has lived in three of the landlord's properties, all located in California) and from inception there was never a written agreement for this arrangement.Now the landlord wants to have them sign a lease and write them checks for the work that is being performed, which apparently is to be cashed and returned right back to the landlord as the rent payment.