How could we organize a deal for this situation? Lease to buy?

[Yashira Zavala]

Hi BP! Another question from this Newbie!

We have a friend very motivated in doing a creative deal with his house.  He is not in the US and had many problems in the past with different management companies, so he wants to be done with the nightmare. 

The house is a 3/2 in a hot growing market very easy to rent and don't need much work. He still has a mortgage on the house (he bought it ~12 years ago) and his PITI payments are ~1200. I estimate the house in this area would rent for 1600.

We just bought our first duplex so we are low in cash to do much, so conventional is not an option. I have been thinking more along the lines of offering him a "Rent/Lease Option or a Sub2 but I haven't done any deal like that and I'm not sure in how to proceed. What are your thoughts on this?