Anyone else has experience with this type of arrangement?  

A: The rules define a “loan originator” as a person who, for or in expectation of direct or indirect compensation or other monetary gain, performs any of the following activities:(1) takes an application, offers, arranges, assists a consumer in obtaining or applying to obtain, negotiates, or otherwise obtains or makes an extension of credit for another person” OR(2) represents to the public through advertising or other means that such a person can or will perform any of these activities.

With a $15000 deposit, my cash into the deal is $8000, so it works out to a 164% return on investment.I feel like because this is an overleveraged scenario, the only way I can make money on this is to have a rent to own type of arrangment.

Once you guys nail down a solid plan, I would start calling lenders and see what kind of financing you can arrange.

In the agreement you would lay out the details of the partnership where she would utilize a HELOC for renovation funds, you would perform the renovation, and at the end of the day, the proceeds after the sale would be split 50/50 or however you arrange it to be. 

Today (Wed) they got a hold of one of them and he wants to make arrangements to come get the stuff and clean it up.In my opinion, they had their chance.

I'd say this is an arrangement you need to make on the front end. 

I knew the owner was a 'down on his luck' disabled Vet so I arranged for him to have a few day post-closing to find a place to move to and to get moved.  

My current focus is finding properties ideal for owner financing arrangements. 

My leases had turned into month-to-month arrangements, so I contacted them entirely through the website (I prefer that over phone calls), had them re-up the lease with rent increases.