With the execution of a new 1-year lease and placement of a security deposit by the new tenant PLUS a pristine final walk-through of the property, you will allow her out of the lease. 

Most lenders I have talked to offer 25 year amortized 25% down loans, but it would be great to find someone who could do 30 year fixed, with less % down (that may be stretching it, but thought I would ask).

The assumptions I made are below:Closing costs are calculated to be 7% of final ARV purchase priceRehab costs are $100/sq ft and $75/sq ftLoan interest is the loan + 10% back to the private money investor (assuming I go that route)Total cost is the MPP + Closing Costs + Rehab CostsTotal Profit is ARV – Total CostOwner receives the MPP (what I would have paid for the house) + Closing Costs (I would have had to pay for these anyway, I could sweeten the deal for myself and offer to split them with the current owner) + Half the profitPrivate Money lender receives their initial loan plus 10% interestI receive the split profit – interest on the rehab loanMy goal was to get the owner as close to their $200k wish in order to convince them to do this less than traditional (and maybe not even possible) way.

As an example, we had a fridge go bad at one property and the warranty company sent a tech out 15 times before finally replacing it.

(The final contract is being sent over next week). 

@Peter Walther @Alexander Szikla @Steven LuttmanI finally got down to the bottom of this.  

I have some capital put to the side, furnishings/decor ready and two cleaning companies already in pocket but need to find an individual/company who is currently subleasing so I can finally get my feet wet.

Finally settle in Northwest Arkansas two year ago and started my real estate investing journey with a house hack. 

I will post about that deal in detail once it is finally finished and stabilized. 

The question is: When it is time for the tenant to finally pay, does the tenant pay us (the new owners), or the old owner whom the debt accumulated under?