which option is best for buying? seller wanting to finance

[911hottie]

What is the name of your state? Florida

What is the name of your state? Florida

Okay this is the situation. We have a very close friend who wants us to buy his home. Home value is about $425-450K (Any suggestions for which situation is best or worst would be greatly appreicated!!!)

He is proposing these options for selling to us:

Option One: Move in at $1550 a month and all money paid for the first 3 years is towards existing mortgage (rent to own) after 3 years loan would be approx 100k and then we could purchase for 300k.

Option Two: Buy house now, pay off existing mortgage of 142k and get mortg for 250k pay the 142k existing and then 108k goes to seller and he would finance the rest 92k for 2% buyout within 5 years.

Option Three: Buy home free & clear for 335K

[seniorjudge]

I choose option three.

[LindaP777]

Who name would be on the deed?
Would current owner carry 2nd mortgage or lien?

Rules in real estate investing when using land contract or lease with option type of deals;
When I'm buying, I always put deed in my name.
When I'm selling, I always keep deed in my name.

[Gadfly]

Option 4: Don't do business with friends, but if are crazy enough to do business with friends sell it free and clear and sell it for what it is worth.

[4Labs]

I would also choose Option 3

[Surf Girl]

Option 3!!!!!

[Gadfly]

With option 3 you walk away from $90K. Why would you do that?