Of the 3 ways to go, rent, sell, or lease option, the LO has the most potential for problems.

And there are pitfalls.If you are taking an educational class, is the focus for RE Investors doing Sandwich Lease Options, or is the focus on first home buyers as LO Tenant Buyers?

I recommend only doing l/o with those who are relatively stable.

Summary - Sub2 Land Trust, then LO with rent + monthly option pmt Brian [REMOVED]

In my experience with L/O, I would say:- 10% had a life issue that got in the way and they were able to recover and we got the deal closed.- 10% actually make the change and get back on track.

I also noticed their was no separate sub2 section but L/O deals are pretty similar so this section should do fine.

When you have a sandwich L/O and your renter decides to take his option how does that work when closing?

Say in three or four years are people who are just using sub-to's and L/O will they be able to continue to make money the way they are?

(seems that an LO would work better that way) Its also funny to me because of questioning whether to make money or not.I agree with Tom though as far as the different perspectives on lower income neighborhoods.

As to whether or not you think you would rent/L/O/owner finance a borrower who went through a workout including a foreclosure, DIL or short sale, I probably would not put them in one of my homes.