I have nothing against CFD or AFD but the biggest issue is not receiving enough security or having sufficient credit from out tenant/buyers to risk it.
Also, with a CFD or AFD, it works against you in an appreciating market whereas we use renewable options that protect us from sudden upswings in the market.
Thus, my vote goes towards L/O unless someone has a good size down payment AND reasonably good credit.
With L/O, takebacks are much quicker and relatively inexpensive.
Im a relatively new investor and have been doing “conventional” buy and flip or buy and hold w/residential properties. Ive done a lease option on a rental but am interested in owner financing using bond for title or contract for deed. From what I understand on a lease option the buyer is actually leasing the property and cant deduct interest, where on a bond for title the buyer is purchasing the property, therefore gaining all of the benefits of ownership. The seller earns the additional cash flow due to a down payment and financing terms and doesnt have any maintenance worries unless you have to foreclose, but this can be made simpler with the proper paperwork upfront (quit claim deed in the event of non payment)
Everything I read is about lease options. Has anyone done the contract for deed or bond for title as I described? What are the pros and cons?