Owner finance problem

[Troy Michaels]

Ok, this is whats happening. I got a owner to agree to owner finance a property, in which i want to immediately rent out to a section 8 tenant. Everything was going smooth, we agreed on a 110,000 sell price with 10,000 down. the 10,000 would be split up into payments, with a balloon due in 12 months for the balance. so far so good. the problem is two fold: he wants me to RENT the property from him, and add a OPTION to purchase contract with it which explains the 10,000 balance. in essence, TWO seperate agreements.the rental contract doesnt even give me the right to sublet. to further compound the deal, a option to purchase doesnt give me ownership rights. now, why cant we just do a simple land contract? the deed will STILL be held in trust, the option to purchase route is too fishy. they could get my 10,000, and find a fault in the option language (which makes the rental agreement a part of the deal, and remember,the rental agreement will not let me sublet, but they KNOW thats what i wanna do. its CRAZY. i dont wanna walk from this deal, but im not backing away from the land contract either.

[Andy J.]

" I got a owner to agree to owner finance a property...."

No you did not! You got the owner agree to a lease/option contract with you as a buyer, not as an investor. It sounds to me like you do not have a meeting of the minds, he's thinking one thing and you're thinking another. THIS IS A RECIPE FOR DISASTER IF YOU TRY TO MOVE FORWARD ON A TRANSACTION!!!

It appears as though he doesn't want to do an owner carry because he wants to get his cash out of the property in a year. It's not crazy at all, sounds like you have a seller that isn't motivated enough to do what you want. If my interpretation is true, you're not walking away from an investment DEAL, you're walking away from a DEAL to buy a personal residence for yourself.