First off, Happy New Year to all.

I've read many of the forums on Lease/options and still have some questions...

- Does Florida have specific regulations regarding Lease Options?

- In a seller, investor, and tenant buyer scenario:

1. Separate the lease and option documentation on the seller-investor side, investor-tenant/buyer side, or both? Why?

2. Can the option price ever be based on a note payoff amount at time of closing?

3. Is a 4-yr or longer lease/option automatically considered an installment sale based on length of time?

4. What are the ramifications for the investor if the IRS determines that a lease/option between seller/investor was actually an installment sale?

- Is it feasible to structure a deal with a seller and tenant buyer when the property is underwater and will remain that way for 2-3 more years? Eg, fair market value is 130k, 164k mortgage at 6% - 30 yr - 8 years into payment). $1169 PI, $1200 fair market rent. Seller willing to lease for $950/mo as part of 5 yr. or longer Lease Option.

Thanks in advance for your feedback!

Rey