If I understand you correctly, You are holding (or will soon hold) a SFR with a 35K mortgage and an ARV of 110K.

My mtg will remain in place.The contract for deed sale varies from state to state so make sure you have correct language in your CFD contract.I like it b/c I am getting nice chunk of change upfront and will be making interest over life of loan as well.

Doing the option correctly, means that you would need to record an memorandum of option with the county recorder, to demonstrate that you have equity in the property.This is a win win, the family gets the money they need ASAP, and you have the opportunity to sell and maximize your return on investment, while never "owning" to the property.Like JD Rockefeller said: "Own Nothing, Control Everything!"

I really appreciate the quick reply's Nathan and am planning on really deeply analyzing this deal to find out if what I'm doing is correct.

My E&O coverage does not cover me for a lease option deal.This all came about because the attroney general of Texas was getting so many complaints regarding contract-for-deed transactions.The legislature put the brakes on lease options along with contract-for-deeds.Chris is correct,Title must transfer to the buyer in 180 days from date of contract.If not, you are left open to possible DPTA violation.

In the mean time, I have a tight little cash paid unit that should generate good cash flow if managed correctly.

So I contacted the person at Fannie Mae, they said that it was correct that it was up for Auction again.

That way you know you're covered, you know the local research is being done correctly and you know you can get in touch with someone if there are title issues/disputes.

Dale you are correct that I need to gather all my information before I start, which is why I posted this.

If staged correctly I could split the master into both a sleeping space and fairly large sitting/office area.