For example, you could buy a property subject-2 and then lease-option it to a tenant buyer who would take title when they exercise their option.

I've been playing phone tag with a lawyer but the $200 towards the mortgage is intended to be a credit towards the cost of the home when they decide to exercise the option to buy.  

Set an strike price, sell them an option and rent to them until they exercise that option.  

Usually a wholesale deal allows you to tie up the property for a very limited time period, there is no cash flow involved, and no profit at the end when the tenant/buyer exercises their option to buy.You can get up to a three year lease/option at the investor end (in the middle), and do a series of 1 year lease/options at the back end until you sell the property.  

I will read your blog and also PM you as I would like to know a little more information on the specifics of your companie's note portfolio you offer to investors.One thing i can't get my head around, though, is if the 2nd lien holder has all of these rights to protect it's interests...modification, foreclosure, etc...why on earth don't they exercise it as opposed to selling the lien to an investor for chump change?

Would that work or would it merely alert them to the idea of exercising their right of redemption?

Your attorney may also have case law in similar circumstances that determines if this applies to STR rental or not...I've supported many similar exercises from an Engineering perspective and the reality is the devil is always in the details.

If the guarantee never had to be exercised then the TK company pocketed the extra money.  

Also, I have only exercised using the MLS to find deals and it is extremely competitive and I don't want to overpay, especially on my first deal!

The lease contained an option to buy not exercised by the previous owner of the business, long story, and did not carry over to me.