How could I structure a deal that would sound acceptable....   

Given that it sounds like this renovation may have upgraded the property, capitalizing it is probably the more appropriate route.

Sounds good, Thank You!

Sound contract management alleviates a lot of the concerns you raised.

It's best to involve a real estate attorney to ensure the contract is legally sound.

Sounds like you have reasonable expectations, which is always a great thing lol.

Bought at $126K, as-is value $165K, and updated value $265K - that sounds a very low margin given the risk involved here. curious how it turns out so far 

It’s all about staying one step ahead, and from the sound of it, your already doing great.Jasper, the Pat Boukhaled investor team,Turning investment visions into reality in Phoenix, AZ - ranked #1 for residential real estate growth and opportunity by PwC

Per person sounds like an administrative nightmare.

It truly sounds to me like you're the victim of a fraud.