My first post guys. Looking forward to hearing from the experts: I am the property manager and realtor on this place. Owner says, "ask tenant if he wants to L/O." Lo and behold, he does. So, I hit the tenant with this: ARV: 205-220K Our price 202K. Seller only owes 189K. So I feel comfortable in the deal. The TB is going to get his option back (5000) plus rental credits over 12 months. So around 1200. Very qualified TB by the way. I don't worry about the house appraising for that. Here's where the question is: So we send the bank/mortgage broker the payoff statement when TB is ready to exercise? IE, TB owes 195,800 and then the mortgage is set from there? I am bit sketchy on how the closing details work from here. So if he owes the seller 195 after credits, the seller just keeps all previous payments but reduces the price? That's how I would understand it and how I have been 'winging' it thus far. Then, the mortgage company works the 195 mortgage and the TB then has to come up with another 10-20 percent for his down payment to them? Is that how you guys have seen this happen? That seems like an awful lot of cash for someone to come up with on a 12-24 month option period. Oh by the way, in case you were wondering. I am making 1.5% when it closes with 500 up front because I don't have to advertise or get too crazy with the details like a typical sale. If it doesn't close, either way the 500 is mine and we'll do it again with a new TB. Meanwhile my company gets the 120 a month to continue to manage it. Doesn't seem like a lot but it works for me and I am the owner of the company so I am not worried about paying a portion of my commission to anyone. Thanks for your expert advise guys! JW