California REO Advice

[John Marsh]

I am looking for advice on a REO in southern California I am looking to purchase. I have negotiated a purchase price of $250K for the home with comps going any where from $280 - $320 K.
My financing consists of a $200K first at 7% and home equity line for the $50K down I need. The payments total $1570 a month plus an additional $450 for taxes and insurance. The monthly total is $2020 and I have 3 families willing to pay a lease option price of $2200 monthly with the ability to purchase the house in three years at the price of $320K.
Any thoughts, suggestions, or criticisms would be greatly appreciated.