Mind you even then it's fun to do the work just for the exercise.

"Just Do It" is great advice if you're thinking about starting an exercise program, but it is terrible advice for buying real estate.

On the sample report, I didn't see eviction expenses, court costs, entity maintenance, excessive damage done by tenants (above and beyond the security deposit), etc.

One of the problems is that your "buyer" may exercise his option and when you try to exercise yours, your seller refuses to complete the sale.

Usually within a few years when my tenant ends up exercising their option that I will give to them under a lease option agreement.

Your lease option is still just a lease with an option to buy which may never be exercised.

He should be allowed to exercise that option.

Sample scenario: 1st is $400,000 and 2nd is $100,000.

I have targeted absentee owners and will send out 500 YL's every other week for the next 3-4 months.In regard to my YL, I've seen a few sample Yellow Letters I could have used but decided to just create one pieced from similar YL's out but slightly altered it to the time of year.

Don't worry about the repair costs during this exercise unless you're doing rehabs (you can make an educated guess for practicing - it's fun to see how it changes your numbers).