You must use a licensed contractor for all the work the bank funds, which requires full permits and using this contractor is going to be expensive.

.$500,000 Value requires $150,000 + $22,000 Closing Cost so total of $172,000 Down + %5.4 APR 5 ARM + 24 months payments needs to be in the bank account which is approx $73,000At the end of the 5 years, the mortgage will be something around $322,000 so with the appreciation etc if we sell the house around $600,000 which - $172,000 - 322,000 = $106,000 NET max return.But if we go all cash , he can make Approx $225,000 ( total rental income + average appreciation)Or If we do All Renovation + All Cash deal =$550,000 investment in 5-year approx profit will be around $300,000If you'd have the All Cash Funds and if you would locate overseas so you don't have time but you also want to make profit , what would you do in this situation?

Creating this doc allows you to walk into a bank, a private investor office, even a family friend with big pockets.

I’m not sure how a bank is going to like that arrrangement

You should create a note, secured by a mortgage against your property and sell that note to another investor who understands the value and isn't constricted by a bank's rules.

How do you take over as the landlord and transferring the payments the tenant makes?

@Brett Wagner, surely, the only reason why you'd buy "anything that didn't make sense on the calculator" is if you were banking on future appreciation, right?

I have been reaching out to banks and previous owners of properties in a nearby area and a bank responded back on a property that that they currently have on the books to go to auction in the future.

They have offered to transfer the water bill to their name for the rest of their tenancy and are willing to sign a liability waiver. 

I obviously will be reaching out to my bank to make sure they are okay and also consult an attorney.What should I be looking for and what questions to ask as I prepare for the purpose of 100% membership interests?