If you're trying the wage to performance (as in making a good profit on the flip) then it needs to balanced such that he makes good money when he does well, because he could make little to no money when he doesn't.

The book is on Lease Options and he mentioned that when buyers were buying to exercise their option on a property, if they had lived there for a year or two they were able to get a refinance loan instead of a new purchase loan. 

Do you want to force the seller to perform?  

Here are a few ideas to kick around:Have borrower get a co-signer, or more specifically, a co-guarantor with property with equity that gets added as additional collateral.Sweeten deal by getting additional collateral like auto, truck, inheritance, anything.If you are concerned about her performance, negotiate a contract for option.

Your performance thus far is very impressive.

I believe you should charge yourself 10%, if it's norm in your area because you will have to work and spend time to perform it and time is money. 

More specifically, I:1) Got the deal more directly than my partner for ~$5-15K less2) Negotiated and performed all inspections ahead of other prospective buyers3) Talked another investor out of the deal at the closing table to get the contract for no more than we originally planned (after over an hour.. one of the stranger circumstances I've experienced in a while, but got a smile, business card, and potential future partner in the process!

You will be taking over someone else's mortgage and your performance on that is tied to that individual seller's credit.  

I may sell the original rental for a better performing home while I still have the capital gains exemption.  

We are beginning to look at non performing notes across the country.