Time allows for adjustments, scaling, and reinvestment in ways that short-term projects simply can’t achieve. 

If this were my property, I’d run a detailed rental analysis (from what I’ve read in Forbes) to see if the short term route could outpace traditional leasing.

What about refinancing  costs or what ever costs that occurs at the end of the loan term?

I think if you are going to keep all three parties involved as owners of the deal long term then you need to separate yourself as a renter and a contractor.

Make sure it explicitly explains the process for termination if you are unhappy with their services, especially if they violate the terms of your agreement.3.

He get's principal and simple interest payments over a number of years.I'll manage the deal and the property.Looking to create a proforma for this that would fit a typical rental analysis but insert the detail of having private money cover the DP.

@Thomas YoungmanThank you for such a detailed response.

Rental properties come in several flavors... short term, long term, etc.  

Hold it for the long-term.

@Tim Delaney is an investor in the Buffalo market and shares many of your views on its long term potential!