Owner will carry/sublet leasing questions Colorado

[Jaylyn Heartso]

Hi everyone!

Let me start from the beginning as this is kind of a crazy scenario! Here we go:

There is a lady that I know that is a friend of a friend type deal. She's facing possible foreclosure (not sure how far behind she is) on a 70-acre property located in Colorado. The house has strong bones but is distressed to the point it will not qualify for most financing (FHA, USDA). She is now, after the last deal she had going fell through, wanting to sell the property to me via owner will carry/lease with option to buy OR assumption of the loan. There is plenty of value in the property and she's willing to get rid of the house for what she's owes to me in order to avoid foreclosure.

Okay now, my wonderful situation:

We are planning to move out of state. We have been planning this for awhile. We cannot do conventional financing for at least another year and would honestly prefer to have a deal such as this being an owner-will-carry type situation where it is not on my credit (tying up my ability to purchase a house elsewhere).

So... I guess my questions are:

-Can an owner actually do an owner will carry if the house is not fully paid off?

-What I would like to do is fix it up (bare minimum), sub lease for a year as an MMJ friendly rental (higher price tag), then buy it at the end of the contract with conventional financing or something creative. Would that be feasible? or even possible???

-What are some of the obvious hurdles someone would face? Who would I talk to get something like this going? I have not familiar with owner will carry whatsoever.

Thank you all for any input. I really appreciate it.