How much will end up coming out of your pocket will ultimately depend on the coverages and exclusions you have.Good luck.

@Marc Shin - This is a good question.To both @Evan Polaski and @Gino Barbaro's points, it ultimately comes down to numbers and feasibility. 

By adhering to a structured and detailed screening process, investors can identify and partner with reliable sponsors, ultimately driving project success and profitability.

Start with BiggerPockets Ultimate Beginners Guide (free).

This is why most mortgage companies make the investor/seller purchase a redemption bond to protect that "$40k" difference between the redemption amount and the ultimate sales price.

Hi,My name is Bobby Henderson and I live in Aiken ,SC. I have decided that I want to get into a Real Estate Investing. I have begun reading books and articles  trying to educate myself before I start this journey. I a...

Income received prior to that date would be considered rental income.Here's a good article on the facts and circumstances that would need to be considered: https://www.jmco.com/articles/real-estate/lease-options-sale...How it is ultimately treated will affect both the buyer and seller.

Ultimately I need 5 units to have experience with lenders.

But if you spend 100K and all of the properties are ultimately redeemed you make a big fat ZERO dollars.

If building a LTR portfolio is your ultimate aim, consider how each potential flip will help you get there.