We walked the job prior to closing to get a bid and a handful more times after to ensure everyone is on the same page - exterior power wash, paint, landscaping, removing a massive redneck deck, all new windows, new countertops, sinks, appliances, all new bathrooms, there wasn't a room we weren't going to touch.So we ended up acquiring it for just over 117 with a reno bid of 45 and we excitedly ripped a 9500 down payment check to get this show going.The project got started and we were seeing progress.

. ;-)  Cool, your risk still stands with this new buyer of this lease-option remaining solvent and liquid.

I said it was. He

Don't want to discourage you but don't let them brain wash you.

You need to pay the loan payments and he needs to pay the rents, it can arranged to wash out if you like.

Consult a real estate lawyer to assist you.The IRS, eager to raise revenue, has decided that for a loan to be a loan, interest must be paid, and if interest is being paid, someone is making taxable income.That means that a loan will still be included in the value of your estate for inheritance tax purposes, should you die.In order to clarify that the loan is not a gift, the lender should write a memo establishing that you, the borrower, were solvent at the time of the loan.

You can credit your money for the rehab back to your purchase washing out the cash transaction but including it for your costs of acquisition, you'll have a profit on the job if you charge one.

I'd rather give some newbie starting out 1000 dollars or something than this clown 4 times as much.Ended up pushing the cash buyer up to match the financing and washing my hands of it.   

_____________ (washed, bleached, etc?)

@Taylor Reichert I would not buy this place, because I cannot come up with a way to get to my minimum investment criteria: 15% Cash on Cash AND $150/month cash flow.I might recommend buying this place if all you have to do is mow the lawn and wash the counters.