The owner is a master plumber and his company is licensed in all mechanicals and he has dozens of subs that do the high quality finish. 

will this be a lease with purchase to buy or an acquisitions with an initial 2 year lease term.thank you 

Doing arbitrage.The risk is too high for most people.

First off  you have a CRIME FREE /Drug Free addendum on each tenant that lives in your rental.If you notice suspicious activity or have reports of the same you give tenant notice of high traffic / volume of people to unit as notice to cure.. if this continues or you see or smell drugs you give notice of non-compliance and lease termination. yes you can ask police for advise.. but your main goal is to limit the calls police have to make to your property so you don't want to be listed as a nuisance property. but if the issues warrants it yes call the cops and if a neighboring unit is worried tell them to call the cops sometimes you have to have a record of police calls to verify the issue so you can write up infraction for eviction action..

I would also highly encourage you to become active in your local real estate clubs if you are not already.

Regarding finance, to piggyback off of others, a fix-and-flip or private loan to finance the majority of acquisition and rehab expenses is your best bet.

It was highly recommended on a BP thread many years ago.I don't do subject-to's, but just be careful. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I am looking for an appreciation and to cover most of my mortgage.Also any tips how much such reno could cost are highly appreciated.thank you

I have a home that is an STR in a highly desirable tourist destination.