Lease purchase lead breakdown/options

[Scott N.]

Hello, I'd like to pick the brains of some seasoned investors who are familiar with lease/purchase options. I have a lead for a lease purchase option but I'm not quite sure how to structure it so it will benefit everyone or if it just isn't a good enough deal to move forward. The details are as follows: The seller owns the home free and clear however with what he purchased it for and what he put into it he wants close to $200,000. In my market the home is realistically worth about $150,000 with a 10% annual appreciation rate. The seller is not opposed to doing a longer term lease of 3-5 years. I could turn around and sub-lease it for $1,100/month. Any advice on how to proceed would be much appreciated!!