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. 

Maybe Trump and Biden and their rich friends actually want to subject our middle class to a permanent state of Penury, by engineering inflation at every chance?

The general idea is that you must acquire an interest in real property you do not already own, and since you already own the subject real property you want to build on, the transaction must be structured so that you are creating an interest in real property you do not already own (in fact, it does not yet exist).

My 46 years in the real property investment field has taught me that almost all wealth in real estate is accumulated through price appreciation of the subject property owned and amortization of the associated mortgage note(s).  

In analysis of subject propert the cap rate for 103 property in this area is 5.4%.

While there's no strict requirement to match the original mortgage terms, reinvesting the full proceeds without financing or using leverage to enhance returns is key.If you don't reinvest the full amount, any shortfall ("boot") will be subject to capital gains tax, and depreciation recapture may apply.This post does not create a CPA-Client relationship.

The rental house is 2 houses away from a house that had been a meth lab, and there is still dealing going on across the street from the subject house.. 

@Ryan Mcpherson BE VERY CAREFUL IF SELLING "SUBJECT-TO"!

What rentals are not subject to fair housing law?

And ready to read 20 1000 pg books on the subject.