What would YOU do in this situation?...HELP

[Jamaal Rogers]

I have a property I would like to eventually buy but for now I would like to control it. The owner wants to buy another house and be done with this one. He currently owes 100k and it's worth around 100k. His current mortgage is around 600.00 a month but it will rent for over 1000.00. I want to capitalize on this cash-flow but I'm not sure what the best option is.

Lease-option comes to mind but he doesn't want to be responsible for anything. I was thinking I could make a "Gross lease-option" where I would be responsible for everything. I would send the payments directly to the lender. The lease would be for 5 yrs and I would have the option of extending the lease another 5yrs or buying the house. Also when the option becomes available I would buy the house for the balance owed.

What are your thoughts on this approach?

I've also heard about wrap around mortgages and a land contract but I'm not sure how these would work.