To lease or not to lease? That is the question!

[Tyler Sanders]

I am working on my very first deal. The owner is willing to deed the property over to me and I pay his mortgage. As I spoke to a closing attorney he warned me about the due on sale clause, which I already knew about. But know that the rubber is on the road, the thought of the mortgage company calling the mortgage due has kind of frightened me. 

Now I am pondering the "lease with the option" strategy. But, with the deed still in the owner's name I don't feel like my investment is secure. Bankruptcy, liens, 2nd mortgages and so forth.

I heard a podcast on bigger pockets of an investor filling a 2nd mortgage on the property he was leasing. From my understanding, he did so to protect the money that he was investing to rehab the home.

If you have expierence in this, I need your advice and wisdom. Thanks!