Having a good scope of work and proper monitoring of contractors following the plan and staying on budget is essential but only provides the outline for the expected not the daily unexpected that's the reality of rehabbing. 

Essentially just cosmetic type stuff.

The only reason that wouldn't happen is if the borrower gives you a Deed in Lieu of foreclosure - essentially signs the house over to you. 

Currently the landlord was paying oil heat.   

Regarding the risk, I see it as essentially the same as being a landlord.

@Abel Curiel  It's essential to have an attorney form an agreement prior to purchasing together.

If your c Corp pays you the essential net income on the property, what’s the advantage?

It is essentially like having a home inspection done to make sure the property is in good condition, but its an inspection of the title so it falls under buyers expense.

Essentially a rental. 

@Andrew Hinton your statement that "any investment would be a qualifying investment transaction under state and federal mandates" does not lower my red flags when the point essentially raises how you qualify your deals.