How should I structure this deal?

[Priscilla Z.]

Hi Everyone!! I've been gone for a while rehabbing houses ... now I'm back and need some of your expertise...please advise. Here's the deal:

4/2/2 Frame house in FL
ARV: 150K-160K
Mortgage Balance: 70K with 18 years to go
PITI: 850/month. Seller is not behind on payments.
Rents: 1000-1200 / month
Condition: Good, needs cosmetics, carpet and paint, it's livable, it’s in best condition cosmetically, but structurally it's great.

Seller is motivated, since she moved to another state after her dad passed away. Seller is willing to let someone else take over the payments on the mortgage, but she wants some equity out of it. She is also willing to create another Note for the equity.

Here are my thoughts:

OPTION 1) I can offer her $90K, taking over the $70K at $850/month, and creating another Note for $20K, 30 years, 4.5% APR=$100/month for a total of $950/month. Balloon in 5 years.

Then I can sell it to a Landlord Investor for $100K, 10K down, and take over the payments on both Notes. The Landlord Investor can rent it for $1100/month and cashflow $150 without using a Property Manager. So I don’t know if it makes sense.

If this is my best option, should I do a Subject To and wholesale it (landlord investor taking a risk at due on sale clause)? or a Contract for Deed and wholesale it?

OPTION 2) I can offer her to do a Lease Option for 90K, with payments of $850/month, no rent credits, and let’s say 2K Option Deposit, for 5 years.

Then I can do a Sandwich Lease Option with someone else, for 110K, 12K down, 1100/month, no rent credits, for 3 years.

I know in this Option I can make money up front, in the middle, and at the end. The only thing is that I will have to be involved, and be responsible for my side of the contract with the seller.

What you guys think on this scenario?

OPTION 3) I can offer her $85K, with $15K down at closing, and take over the $70K at $850/month with a Balloon in 5 years.
Then I would market it as a Seller Financed deal for $95K with $25K down, and take over the $70K.

Again, this would have to be for a Landlord investor or Owner occupied.
What you guys think about this one?

Any advice would be be appreciated.