Second, im sure you can come to some sort of an arrangement with the investment company if you find a deal. where are you based?? 

So while I'm not going to say whether or not you should go through with it, I'll try to provide you with some things to consider when making your decision.Pros:You can get the payment off your booksYou can sell the property for full price, when it doesn't appear that there is much interest right nowAssuming you are requiring an option payment (which I would suggest), you will get some additional cash nowSo basically the Pros can be summed up in that you have the potential to do pretty well financiallyCons:Lease options typically require less landlord hassle, but at the end of the day you are still a landlordThey could trash the house and then not buy itThey could stop paying and make you evict them, costing you time and money (there is also the possibility with lease options if they aren't structured properly that the courts could deem them to be a sale rather than a leasing arrangement in which case you would have to foreclose instead of the less painful eviction).

If I bring a motivated seller and a tenet buyer together and get them into a lease option arrangement, how do I set the correct home selling price?

Probably start with flowers then move to the madness of crowds.

If necessary, the sale can be postponed by an announcement at the place and time of the original foreclosure.Typically, a title insurance company is named as the trustee to arrange the sale of the real estate.Antideficiency Statues Some states such as California have enacted antideficiecy statues.

They put up the down payment and arrange bank finance and you locate, structure, and manage the deal for an agreed upon split.

We borrow 15-20 yr. amort. with 5 year balloon for a few months (also to make a full cash offer) and then try and arrange long term financing after things are rehabbed and rented.

Minimal furniture, neatly arranged.

The same thing can work with any option arrangement and sell or buy an option.

My question is, how can we manage the tax implications of this arrangement?