short term owner finance vs lease option for long term buy and ho

[Jason Morris]

I found a good FSBO where the owner is willing to finance it for a very short time, 1 year or less. A lease option maybe another option he would consider. The property needs about 15k invested to get it up to my standards, then I intend to hold it and rent for a long time. I've worked out 2 options for this:

1. a 30 year fixed mortgage with a 1 year balloon payment
2. a lease option (have not decided what the terms might be here to approach the seller)

I'd be hesitant to lease option and do any sort of work on the house, but that does allow the flexibility for me to opt out if I need to.  If I owner finance, that locks me in.  I'm new into investing, I have 1 property and am closing on a second soon (which is why I can't close on another right away, and this option works for me).  Any suggestions/thoughts are welcome.

[Tyler Mutch]

@Jason Morris Gotcha! I would work backwards on this one, so for example. 

you buy it for 100k, most of the time lenders won't usually do more than 70% ltv. I think you'd need to have it valued around 142,000 for you to pull your cash out. With the money you've put in what do you believe it will be worth at this point? Enough to Refi?

I would just run the numbers and find out how much you'd need to bring to the table, that would probably make it an easier decision. if you'll need to bring 25k to the table and you know that, you'll know. 

If you'd like some help, send me a message.