Obviously these are grossly oversimplified scenarios that don't include maintenance, vacancies etc, which would be present no matter how the house is paid for, but it may help illustrate my dilema.Purchase Price 100,000 Market Rent $950Scenario #1-Traditional Purchase, 20% down, 30 year fixed interest loan:$100k-$20k down, Finance $80k @5%, PITI Payments of $690=CF of $260/mo($20k invested, $3120 received =15.6%ROI year one.

Rich vs WealthAs I have been taught, the difference between rich and wealth is rich people work for money; wealthy people have their money work for them.To illustrate, some professional U.S. athletes are paid millions each year to play their sport - they are rich; the owners of the teams are wealthy."

Here is an image to illustrate. 4.

This is an oversimplification for illustration purposes & estate planning may require a more sophisticated structure according to your situation.

(I am using illustrative numbers not real yield to maturity calculations)The glass only holds so much.

Turns out they were doing great and had a backlog of work from their target customer segment.What this illustrates to me is that there are different customer segments and value received is a perception based on customer wants and needs.

Tenants may easily be overpaying.For those who really want to buy into these options, the following remarks may help:You buy a lease option to bet on the future large volatility increase in the property price as illustrated in the following.After you have bought the option, suppose that the property price jumps up a lot, you make a lot money; suppose the property price suddenly drops 70%, you are still much better off than if you have bought the property.

Bill Gulley - you could have used the recent scandal at Penn State University to illustrate your example ...

I will use even numbers to demonstrate, i dont think they will make margins this good but it illustrates the point easier...

(the example is only meant to illustrate the point, not a legitimate deal) If you are an experienced NPN investor, you already understand this and I am only typing this out for other readers who hear 10% and think it MUST be a great deal.