We vacated our apt as per lease ending on 31-Aug..

What were were planning on is stating in the lease how the AC and heat would be programmed automatically.There is a gas "wood stove" to help heat the basement unit that the tenant would have exclusive control over.

I am trying to figure out what the best thing to do for a friend is in the situation outlined below:Home Value $570kowed 1st mort $496k (current loan was modified and principal reduction completed for $100k reallocated in form of balloon payment at end of loan term)no 2ndarrears $30kIn process of going through bankruptcy, however, want to complete a lease with option to buy. 

List price: $155k  Zestimate: $160k Rental Estimates: $1000-1200Offer Strategy 1: Subject To (depending on what I find out about underlying debt, payment and willingness to keep mortgage in their name)Offer Strategy 2: Lease Option (with right to sublet)Offer Strategy 3: Wrap Mortgage (then after seasoning connect them with a note purchaser if the wrap could be setup in a marketable way where this works for the seller and note buyer)Thoughts?

As well, and assuming necessary, once done, you can advertise this upgrade and the positive resulting heating and cooling bills in future marketing when the need arises.For straight rentals (not a property sold via Lease Option, CFD, or other Owner Financing), I never pass large expenses on to my tenants (pretty much anything over $300, unless their fault), but assuming this is a defect or need that I did not see in my pre-purchase home inspection report, I will just deal with it out of my own pocket and earn a bit of positive "good landlord capital" in the process.Good luck with it!

@Zoe MarrWhat does your lease (that was signed) say?

@Ron Fiscus It is Retail Lease Trac.

Granted, I do not know if you have grounds to evict unless you have a lease or some form of documentation showing that the tenant agreed to only occupy one bedroom in one unit but talk to Barbara.

I have a duplex in South Minneapolis and unit #1 has two tenants who signed a year lease. 

Lease Option How did you add value to the deal?