The property is in terrible condition where it easily could cost about $150k+ for the renovation and selling “As Is” I’ve checked the comps and it seems that market price for that area is about $250-$375k along with the next door neighbors home being relatively new and renovated from it’s older structure.

@John Stewart the considerations for the project would be zoning code based on the location of the project followed by structural considerations.

It's more specific than this breakdown, but basically rehabbing a bathroom (think attached/modified structure) would be a capital improvement deducted over time, but something like the cost of the toilet would be deductible this year as 'ordinary'  and therefore maintenance. 

My initial thoughts regarding this type of mortgage structuring are that it would be more beneficial when rates are high because there's a better chance that at the end of the initial period you could refinance into an interest rate that is either the same or lower than what you would've obtained.

@Christopher Lee to my knowledge this is not a common thing, it may be that being based somewhere else allows larger cases to be handled in courts in states more favorable to landlords, but most cases (if you have any) will not rise to that level and likely not be worth the additional fees of setting up and maintaining the structure. 

Predicting the future is always fraught with risk, but I think most governmental agencies, investors and realtors think there are structural elements that will keep rent rising, albeit not at the rate we have seen the last year.

I have some potential private money investors and am looking for advice on how to structure the agreement? 

." - This sentence scares me as an investor. 

New paint, flooring, new kitchen remodel, complete basement refinish, complete landscaping refinish,structural reinforced and water mitigation added What was the outcome?

The house is in good structural shape, but will require some work to get it to either selling or renting condition.