She will receive the initial "buy" amount that we agreed on, a portion of which is going to be paid up-front in order to bring her mortgage current and give her enough to move out to Ohio, and then a percentage of the final sale amount.The reason this flip works is because we are avoiding going through two purchases and also avoiding financing fees from a HML on the purchase of the house, since the owner will still own the house during renovations.Since she doesn't own the house outright, this isn't really "seller financing," but maybe more like a joint venture?

Well, firstly, captial is currently tied with the above venture.

If you can find management that can handle all the aspects you'll be good to go, but I always question managers - if you can manage well, why haven't you gone out and just DIY. 

It walks and talks more like a joint venture agreement that is specifically geared toward a sale after the rehab is done.It’s irrelevant for You to call it a “hybrid heloc” and impose “heloc laws” on it when it’s not a heloc.

There's a surprising lack of cars, folks use uber, mass transit but this is working in suburban settings when the house has space from neighbors and parking...Like tiny homes (which cost too much to address low income housing) renting out rooms is a zoning and locale acceptance issue that has only just started.FWIW to run a DIY rooming house you have to learn the tricks of screening, to prevent riots in the home, handle arguments, over night guests, dogs/pets etc etc.   

@Megan LawsonConventional lenders do not like seeing "gifts" from outside parties.They will ask for 2 months worth of bank statements and flag any incoming deposit that looks fishy.From the lender's eyes, if you can't come up with the 20% downpayment, you may have trouble coming up with the monthly mortgage payments which means its a risky loan.It looks like you are trying to create a partnership or a joint venture with your parents.

Since we're just beginning our real estate investing venture, I've never done a subject to. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $80,499

Sale price: $157,500

Contributors:
Jeffrey Houser,
Kaleb Packer

This property was a ...

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $80,499

Sale price: $157,500

Contributors:
Jeffrey Houser,
Kaleb Packer

This was a foreclosu...

No DIY with fire damage.It is the best reason to get huge discounts though.