Owner carry or lease option?

[Jake Mires]

I have an interesting situation I need help with! I have a house I want to purchase, I've talked to the seller who just wants to get it off their hands. I suggested this- I pay them $1,000 per month for the home, and buy it for $200,000 after 2 years. But I treat the home as my own, upgrade and fix it up to rent it. The idea is that I pay the owners $1,000 per month, rent it out for $1,400 take that cash flow, and purchase the home after 2 years at $200,000. With appreciation it will be a great deal at 200k in 2 years. I don't know if I should do an owner carry? Or a lease option with sub-lease? I want to be legally straight. But am slightly afraid if i fix up The house and they don't sell it to me, I'm screwed right?