Possible Deal in VA... need advice

[Chris Mouzon]

BP community - My friend approached me about a property that he purchased almost 6 years ago in Richmond VA. He went in on a deal with his brother to fix & flip this property, but for whatever reason, plans fell through. They purchased the house for $120K but now, looking at comparable's in the area, the property is only worth maybe $70K. My friend wants to unload this property as soon as possible and asked for my help. I'm trying to find the best way to cover my friend and make it into a good deal for myself as well.

After getting more insight here on BP, I think that a lease option would be a great way to go. I can have my friend agree to the option where I purchase the house from him in 3-5 years for a certain price around $70K (which is what its worth now), and look for potential buyers in that area to do another lease option, with shorter terms, with hopes that they purchase the house for more. I can find someone in the meantime to get the property rented out, so I do not have to pay the mortgage while searching for the buyers. Pay off my friend when the house sells and keep the change. Win-win, right?!

Now the only problem is, we currently live in Los Angeles, but as I said before, the house is located in Richmond, VA. From the pictures I've seen, plus speaking to a couple RE agents in the Richmond area, it seems as though the house is not located in the best area (a few abandoned homes, not the nicest neighborhood, no great houses on the street). I'm figuring we can add value to the house, but since I haven't seen it, I'm not quite sure.

So my questions are: 1. What are the main factors I should consider to determine whether this can be a good deal? Is it possible to analyze a deal from such a long distance, without ever seeing the house? What information do I need to do a proper analysis? 2. If it is able to be rented out, how do I start to find tenants? Should I enlist the help of a RE agent or property management company in VA? 3. Is the lease option a good strategy to use on a property like this?

Thanks in advance BP community!

Chris