An option is an encumbrance, buy the property subject to the option at a lower price, if the optionee buys, you sell, if not, you still win.A deed in lieu of foreclosure can be had after the note is purchased at a discount.You can buy the note at a discount and have the owner refinance, same with installment contracts. 

The only other option I see is a short sale, if you don't need to purchase for a few years and don't mind a temporary credit hit to save the $60k.  

This is a buy and hold in a great location in a great market Does anyone know of a group i can post this deal And last option we were considering was to use her cards to pay off my debt so then I can buy the house from her and get a loan on it If u made it this far thanks 🙂

It’s more about offering a different option for owners who need capital, and offering investors to access the world of real estate investing fast and smart, like never before. 

@James Tobin  yes FHA will be a very low downpayment option for you.

If maintaining cash flow is your primary objective, you might want to explore other options.

Question 2: if homes upside down on mortgage what are my options?

The way I see it, I have 2 options: 1) inform her of her responsibility to turn on the heat or be liable for any damages caused by the cold weather or 2) turn on the heat myself.

And sounds like a good set of options you are looking at.Here's some data and visualization on recent trends in some of the markets mentioned here.

Meet with financial advisers/wealth managers and see what other options other than real estate there are and how to best allocate / diversify. ie have you maxed out your TFSA?