Subject To With Balloon Payment
I am very new to sub to investing. I am looking to approach a homeowner who has 8 years of equity (I think, I need to do a full search of all lien holders). The house is assessed for $500k + will sell for more (once again need to look up comps). Before I do further research, here is what I am wondering.
I am thinking of doing this deal sub to (if they accept). Can I offer to take it sub to with money up front towards their equity and a payoff of their loan within 12 months?
This will give me time to rehab and resell. When I do this, do they deed me the home? When I sell it to my retail buyer their new loan can directly payoff the old one?
It seems like a lot of strategies with sub to are sub to/Lease Option. I'd like to buy sub to, have the deed transferred to my LLC then resell within a few months and payoff the seller's original loan. 
A mortgage is a defect in the title. You are purchasing a property subject to this defect. On the same hand, you know that if you pay $XXX per month with a balloon on this certain date that you can get a release of mortgage.
You certainly can simply take the property sub2 the mortgage, pay the owners what you agree for their equity, rehab, and then simply sell. When you sell you'll simply need a payoff for the date of closing. At closing the buyers will bring their new loan and the funds will go to the other bank, misc fees, and then to you!!
Thanks! This sounds perfect. I am curious to know if anyone uses this strategy or a slight variation of it?
I am assuming I can have them sign a quit claim over to me at closing...my state does not have warranty deeds...and the loan will still show up as a lien.