"subject to" or lease option to a seller.

[Nikia Jenkins]

We have a lead and this seller owes 250,000 on his property which according to Redfin it's worth 285,000. The asking price is 280,000. No tenants are in the property and the mortgage is 1300.00 a month. Can we make a deal using "subject to" or lease option to the seller? How can we present this to the seller? Is there a deal here at all? Need help?

[Rob Badhorn]

Nikia, 

Try Rentometer.com or Zillow's Rent Zestimate for rent in a mile radius. We are very honest with our sellers on Subject2's. We take over the property on a Subject2, season the tenant, then technically you could Lease option it out (their new loan pays off the old one). As long as the CAP rate (NOI/Value of the house) is a good one for your area.

If I do a Subject2, I try to minimally get $250/month in income.  Otherwise its not worth it to me.  

Good Luck, Rob