Hey Jeff without knowing any details everything is what you are able negotiate. but you have to take in account the years interest rate and purchase price and what kind of cash flow.I will say get a mentor if you’re inexperienced these kind of deals can go left if you really have little knowledge when it comes to structure .

Do I need 3 separate accounts 3.

A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too

Helps protect personal finances/accounting, etc. 3.

And make sure the price of the home has been lowered significantly to account for this and it's not just 90K lower than comps. 

@Kelly BeckYou are correct the buyers pay but what do they do if they are paying the fee - they lower their price to account for that fee.

Though I am unsure how I would amortize the up front remodeling costs for P&L, tax accounting.2) Interest only loans term loans -  Would allow current owner to have cash flow on the property, without eroding the asset value. 

I just did a Zoom call with an accountant, a lawyer, and someone who helps set up funds. 

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Be sure to tell your accountant that you may now need to file non-resident income tax returns in each state where you own property as well.

@Angela Simon, If it wasn't your son there is a small chance that your accountant would let you purchase the 50% of the property you don't own.