Why don't you just use your own funds for the down payment, and work out an arrangement with your friend to cover the rehab expenses.

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

As a result the terms/carveouts/covenants were already pre arranged. 

If you make that 2nd arrangement, you must fulfill your end of the agreement each time to build a trust level for future work with the contractor.

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

I believe current laws stipulate the landlord just needs a 15 day notice to end the arrangement, so if it doesn't work out it could turn over fairly quickly, assuming no eviction needed or substantial damage done. 

Honestly I'm not looking for this type of arrangement I'm trying to figure it out is it being sold because of the bank/mortgage foreclosure or HOA foreclosure.

So would a stiffer, more expensive PVC shower liner that can be more easily arranged so that its edge more effectively cuts off water escape.But this is a problem point.

I have an opportunity to arrange/coordinate a unique small project as a launching point for a land development venture.