I'm a new investor looking hard at using Lease Options to obtain properties and then re-Lease Option them to another tenant/buyer with better terms. I have heard that in some states, Lease Options are a no-go. Does anyone know if Maryland allows Lease Options? If so, do they treat the tenant/buyer as a tenant if they fail to pay the rent or as a buyer (if they put down a non-refundable Option payment at the beginning of a lease)?

Finally, anyone have some good contacts (real estate lawyers) in Maryland that I could speak with for more in depth information? Thanks!!!

Jim in Maryland

Try the yellow pages to find an attorney.
With a lease option- you do not have ownership, just possession, but then it depends on whether you have sublease rights and the limitations on those and the nature of the possession that you have in the lease option. In some places, the issue is more with lack of ownership resulting in lack of ability to give out leasehold rights. Lease option means that there is a lease and you can exercise an option to purchase.