Possible exit strategies on this preforeclosure?

[Austin Wood]

Preforeclosure worth around 230k. owner owes 245k left on the mortgage. The house could rent for 1400-1500. Assuming she can’t sell it on the market, what are the possible exit strategies for this house? I am thinking currently the best option (assuming her financing allows for nice cash flow) is a purchase subject to then sell with owner financing. What would you guys do?

[David M.]

@Austin Wood

Maybe I'm being a bit dim, but you are going to have to explain to me how that works...  For starters, this looks like a short sale, really...

So, you want to purchase subject to.  After that transaction, you are out whatever cash you paid the owner and now have a $230k valued property with a $245k mortgage (under somebody else's name).  You are still underwater.  Then, you want to sell with owner financing, so you are going to take a 2nd lien position for your buyer?  Huh?  I am so confused.