What is the difference between Sub2 & LO?

What is the difference between Sub2 & LO?

With a subject to you have actually gotten the deed to the property. You have taken over the exiting mortgage and are making the payments. You are in full ownership of the property.

With a lease/option you have entered into an option to purchase the property for a specific amount of money. This option is good for a specified period of time. You have also entered into a lease and will pay the owner a sum based on the terms of the lease and the period of time outlined in the lease. Generally the lease term and the option run concurrently and are somewhat interconnected with regard to performance.

Taking a property subject to is a much stronger way to control the property as you actually own it and can sell it at any time. With a lease option you have an equitable interest in the property bu you always run the risk of having the owner renege on the sale when you try to flip the property. Sure you can sue for specific performance and such but all that usually happens is your profit goes down the drain and you make some lawyers mortgage payment for them.

I agree with what was said up until the point above. A lease option clearly does not give a tenant/buyer equitable interest in the property. The t/b is just that: a tenant if and until they exercise their option to purchase.