This would avoid having to pay taxes on any capital gains since you are using the condo as an investment property, and you would retain the asset which someone else (your tenant) is paying down the loan balance. 

Well done.You've been a real asset to the community and I'm glad people recognize you for it!

.********** makes some valid points, and you dont want to get into a trap where you are suggesting that you will stop a foreclosure, or that you are consulting with them unless you are intending to do a short sale (dont recommend it unless you have some serious patience, and get educated by someone that is successfully doing it in your area).If you are going to try and work the lease option exit strategy by targeting preforeclosures, then getting the deed from them without giving them ANY money (along with a authorization to release information from the bank about that loan), and take the deed into a land trust and you should be ok.

You also need to verify what rent is authorized for this tenant and whether it includes utilities.

Hey there,I just finished reading a book in which the author laid out his average buying, holding, and selling costs for his rehab/flips.

He then proceeded to tell me that real estate was the best asset class since you could buy properties with little to no money down.

I know an asset manager and he says that not only do they have to approve all the deals, but when the bank takes the home back and lists it as an REO, the MI company has to approve the LIST PRICE!

Here's how that game typically went The "Investor" who had a 680 or better credit score qualified for 100% financing Stated income/ Stated Assets or No Ratio and for a brief time No DOC ( No verfication of income occurred with any of these programs.

I am a doctoral student with: [list]little debt (car loan and 35k in student loans), little assets (3k in an index fund, 7k in a target retirement fund/Roth IRA, 1k in individual stocks, 5k in cash), little income (just my student stipend of less than $20,000/year and another $2-3000 from web design and illustrating jobs on the side), and a little family (wife and two kids).

Such as his insurance number and others that he has done business with.This way he holds all the money in his escrow account and can not release it unless it has been authorized by you.These are the kinds of situations that make people sour and untrustworthy of the legitimate investors.I am truly sorry to hear what has happened to many of you, but chalk it up to the cost of doing business.Douglas