Personally, I will incur UBIT all day long for a no-money down or lo-money down deal.

The catch here would be what the CFPB will do later in 2014 when they address the issue of RTO, LTO, LO, et al as they refine the SAFE Act with more Rules and clarifications.

Brian, I respect your knowledge and know that you promote L/O's, sub2's and such, but the above is somewhat of a misrepresentation.

Lease option from seller and assign in TX (see @John Jackson who is an expert in LO in TX)Both of these require little funds and much knowledge about sellers and buyers and financing.

A straight lease-option can probably be done, as to doing it legally, it depends on which L/O deal you're involved in, what your position might be.

Some of the L/O people on BP will probably tell you that many L/O don't execute the purchase.

It may be one of the tougher strategies because you need to find relatively more equity, but I liked its simplicity: Get a property at a discount (Hard part) and flip it as-is to an Investor (easy part).Lease Options (LO's) appealed to me along the way as well because they seemed to be a softer sell and you could make a deal even where there wasn't a ton of equity, but it seemed like a lot of moving parts and less profit per deal.

In reality, most in a L/O don't get to 10%.There are different aspects of L/Os, lending, interests conveyed, tax issues, installment sales where the SAFE Act is applicable in some cases and a range of other issues.

If the tenant can't fulfill the L/O agreement on the property where there is a contract, you cannot keep them in that property (by either re-newing the lease option or re-renting to them) - this will give them equitable interest (b/c there was a L/O contract).

L/O also means you need qualified buyers in there, not renters, that can pull the trigger and take you out of your financing requirements.If you want to keep them, a sub-2 would be much better for you as you are in title, a seller financed wrap, as that means you'll be refinancing instead of purchasing.....but we don't have enough info here as to your down payment/option payment, loan to value, market rents, etc.