Assume it will happen, account for it in your math, and it will be a irritating situation instead of a devastating blow.And yes, when your rental (and lease options are really just rentals) is vacant you still have to make your payments.

If so I assume there'd be a cost with that and also the possibility the real estate agent could list it also and market it better thus selling it first.

I assume a 5% vacancy rate, and around $2000 a year maintenance.

That's assuming there isn't any accrued interest or any other costs or bills.

I was just wondering - in the case of a sub2, if someone already has equity in the house, you simply take over the remaining mortgage payments, technically without even assuming the mortgage, and when they're done it's considered payed for in full?

Assuming my friends would want to rent a house which I find, the payments would be the same, but then at the end of the option, if the value of the house were more, I'd "we'd" have an opportunity to buy and resell for a profit.

But, in my analysis I still assumed 50% for the NOI because I intend to have a management company manage the complex.What would pay?

I'm thinking of a strategy where I lease option properties from sellers and turn around and lease optioning to buyers thus controlling the properties, but not needing traditional financing or typical rental headaches.I assume I'm not the only one thinking of this–is this a viable strategy in your opinion?

Make sure that you get to pick the title agent, and find one that is very comfortable with double closings.I'm assuming your buyer put in his bid as an investor.

I assume that you're talking about a tax foreclosure sale?