They would also provide the funding and renovation funds at 7%.  

Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights.

@Dave Meyer had an interesting episode on the BiggerPockets Real Estate Podcast about 3 main resources when it comes to investments: cash, time, and experience. 

I like that you can setup different virtual accounts for security deposit let's say, or to separately ledger cash collected through a rent to own contract.

I'm doing this exact thing right now- I've been pleasantly surprised by how many people in my network have resources, cash and interest in something like this. 

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

If you want them to leave, provide them legal notice to leave.

For my clients, this SCREAMS of building equity, provided the ARVs would support the rehab.

If you are looking to pull more cash out I'd go with the second option.

There, we can provide you with the necessary information in order to list your property."