Make a list of all deferred maintenance... baths/kitchen ages, age of floors, etc... anything that may need replaced soon.Major issues: HVAC agesRoof - look at condition and look for leaks insideCheck electrical box - fuse and knob/tube wiring big issueFoundationWindows/trim Siding conditionNone of those are make it or break it issues, you just want to make sure you buy at a price that reflects the deferred maintenance/major issues and have a plan for it.  

I suspect there are other HMLs out there doing this - but I would like to know more about lending for a specified term (e.g. 6 months) with deferred interest rate payments in exchange for a "Taste of the Flip."  

I'm looking at up to 5k in other structural deferred maintenance, and I would like to dump 10-20k into improvements to raise rents.

There was deferred maintenance and the sellers were motivated.  

@Aaron SmithAre there any rehab costs.Lender one may allow a portion of deferred maintenance, but no rehab moneyStephanie

An update for everyone ...Please get with your RE and / or tax attorney about changes to the tax law which impact contract for deed.In the past, the owner could defer depreciation recoupment until the deed actually was conveyed.Now, that depreciation becomes taxable income upon contract inception.Get with your attorney for specific details.

Is it going to cure deferred maintenance or to make cosmetic improvements?

If there is already a lot of deferred maintenance, they will have concerns and might make you do the repairs anyway.

I suspect there are other HMLs out there doing this - but I would like to know more about lending for a specified term (e.g. 6 months) with deferred interest rate payments in exchange for a "Taste of the Flip."

Watch out for month to month leases.Rent roll will give you the historic vacancy rate.Tax returns will tell you if the property is making money or losing money.Also ask if there is any deferred maintenance.Honestly, your Realtor should be doing all this, unless he/she is an inexperienced agent with no commercial experience!