What to do with this deal? Is it a deal?

[Nuhan Demirkan]

The owner lives out of the country and the tenant hasn't paid the rent since May '13. The owner is servicing the mortgage. There is a mortgage on the property for $200K, the PITI is $1540 plus $50 HOA. There is no equity in the house but he is not upside down either. After fees and commissions he would net about $200K to pay off the mortgage at a standard sale. He is currently renting the property for $1600/mo. But the comps for rent in the same neighborhood are $1800-$1895/mo with only days on the market. The owner is frustrated (thinking about eviction) and would like me to make his problem go away. My options so far are:
1- Buy the townhouse subject to existing mortgage, evict the current tenant and re-rent for $1850/mo, refinance in 12+ months to lower the PITI to around $1350/mo.
2- Do a lease purchase option with the current owner and a prospective purchaser and keep the down payment as my fee
3- Do nothing, move on to the next deal

What would you guys do? Any feedback would be appreciated.

Thanks,