Be aware that most people offering rent to own are not really looking to sell they are just looking to increase revenue through option fees (only a small percentage (<5%) are ever exercised.

@Robert Taylor This looks like one of those cases where everyone is right, even though they differ.If you are building a long term enterprise, then you can certainly benefit from consistently doing certifiable quality improvements and exercising good will in your transactions.

Also, if you have already seen the list of houses on the docket, I would suggest you do an estimate on every property before you go just for the exercise of it, so you will know after the auction how close you were in your numbers.

The option term is 30 years, but you can exercise the option to purchase at any time.

From above the equity at the end of the year if the tenant DOES NOT exercises whats in the the deal.$110k -90K + $5K = 25K.IS this correct.

I understand that this is a general rule of thumb when determining a properties feasibility but the 50% that gets carved off ultimately does get exercised during tenant occupation, correct?

But, it's a necessary exercise. 

The lease option money may be substantial.Buyer and seller may agree to a purchase price now or the buyer may agree to pay market value at the time the option is exercised.

The Realtor would help to negotiate lease terms, option fee, & hopefully stick around to assist with the sale afterward once the "tenant buyer" exercises the option.  

As a responsibly armed american, I can say without a doubt in my mind that if we don't exercise our rights we will lose them.