how to get make offer on owner finance deal when seller is afraid of due on sale clause

[Troy Michaels]

120000 asking price with 40000 down is what seller wants. the 40000 is the payoff on owner note with his bank . ok, how can i work this so that the seller will do the deal without me paying off his note ? he only wanted tthe 40000 down because he is afraid of the due on sale clause on his note . otherwise , he will carry a owner finance deal with me.

[Jon Holdman]

This is usually just called a "lease/option" when discussing a SFR. The master lease is a more common term for a multi, since you're leasing the whole thing then subleasing the individual units.

Yep, you would want language that allows you to sublease.

Another option would be a land contract. The seller retains title, but you have more control than with a lease option. The IRS views a land contract as a transfer of ownership (i.e., you get to take the depreciation) where a lease/option does not. Strictly speaking, it does violate DOS, too, though. But the seller retains title.