You may also want to consider doing a lease-option sandwich, a.k.a. a subject to deal in some cases.  

Sandwich Lease Options would be another.   

He is planning to file for Chap 13 with the payoff plan to have my sister myself and he pay off the unpaid 1st mortgage and the remainder of the first mortgage and the second will be forgiven after 5 years.Here are the numbers and info:1) Location Sandwich, MA (Cape Cod) MLS#720928472) Total cost after 5 years: $232,799 (115,826 on first 116,972 on unpaid balance)**If sold prior to 5 years beforehand the 2nd mortgage will not be forgiven and this would not be a deal**3) Needs about 30,000 in repairs and updates*This is pending an inspection of course but I have a GC in my family who provided me that ballpark4) ARV and 5 years of payments: 360,000 based on current comps **(What are projections for Cape Cod?

So I'm about to setup my first sandwich lease option and I'm reading through the paperwork that the seller/optionor/lessor will sign and I was wondering if you could help me read the legaleze.  

@Amberle FarthingI've completed many lease optionsit's helpful to be able to clearly understand what you're doing, are you doing a sandwich lease option where you are the owner or you are the investor in the middle, or are you doing a lease option assignment, where you're entering into a lease with option with seller,  and assigning the deal for a fee?

From what i understand in a lease option sandwich, most investors collect an option consideration from their TBer, and subtract that amount from the price of the home.

@Robert Schwartz Lease options are a tool to be able to make money with Properties that generally have low equity Lease option assignments and sandwich lease-options are most popular You can be licensed or unlicensed  Check my blog on BiggerPockets about lease options

So here's the run down.Deal (Assignment)4 bed 2 1/2 bath nice newer Neighborhood on a Cul-De-Sac $280,000 Purchase Price (Owner Owes $250,000 and home is worth $280,000)$1650 Rent (this is what current owners pay to cover PITI and this is market)1 year lease with the option to extend 6 monthsOption Fee/Consideration: 3-5% (this will go towards purchase price)Currently I have the home under contract with an Option which I plan on assigning to the new Tenant-Buyer since there is no room for a sandwich (rent is at market rent and price is at market price).

Describe what you want to do, sandwich lease option, lease option from seller then sub lease and sub option?

Are you only finding the LO tenant/buyer, or are you going to do a sandwich lease (you leasing from the owner and then you leasing to the tenant).