In a "lease option", there is an option to purchase - that option can either be exercised or allowed to lapse; as a result, there is no obligation to make the purchase.

I could not tell you what caused others to overlook that property (the foundation issues probably played a role) but it worked out really well for us.

If I am looking to do a sandwich lease option and my tenant buyer is going to exercise the option using conventional bank funding, how is this closing done since I am not the homeowner on record?

I am thinking that this scenario would be a good way to give lenders security for a line of credit without completely sapping the ROE if one wishes to take a passive role in the underlying asset instead of managing the project.

But the real exercise is to anticipate taxation impacts.

One exercise will be this.

But, even then social media seems to be plays a bigger role and is something I an experimenting with even more.

What if you Lease/Option the house and exercise your option when ready?

The only person that we have tracked down that may serve this role seems to be not of sound mind any more.

Make sure you and your business partner come up with an operating agreement that clearly defines the roles of each person, how capital contributions will be split, how proceeds will be split, how to end the company, etc.