Please Help Me Analyze This Subject To Deal

[Gabrielle E.]

Hi all,

Please help me analyze this subject to deal. 

Property location: Glen Allen, VA

Property details: 3 bed, 2.5 baths 1,052 sq ft. Contains a paved driveway, large yard, in-ground pool, and detached two car garage. Nice area/neighborhood

Property is vacant

Condition: Outdated cosmetics but no repairs needed

Mortgage info: $151k mortgage balance, $805 monthly payments (includes PITI), 30 year Conventional Financing with 25 years left (it was refinanced 5 years ago), 4.375% interest rate

Rent: Property will rent for $1400/mo

ARV on the property is $200k. He attempted to list for $205k 5 months ago and it didn't sell

Back Story: The decision maker is a nephew who was left this home in a will from his aunt and uncle. The mortgage is still in the aunt and uncle's name. The bank has attempted to foreclose on the house but the bank is giving the nephew 6-8 months to find a solution. The nephew is fine with letting me take over the mortgage payments, he just wants some cash in his pocket. I negotiated $5k down and take over the mortgage payments which he agreed to. He's also fine with me converting the property into a rental. He's motivated so my exit strategy doesn't seem to matter to the seller.

Questions: 

1. What strategy would you all use for this set up? I'd like to just pay the nephew $5k and keep the property as a long term rental but I'm not sure if doing a sandwich lease option or owner financing it to a tenant buyer is a better option.

2. How difficult is this going to be since the owners are deceased? I know the nephew is not concerned with the due on sale clause because his name isn't on title.

@Jon Holdman