anyway:I assumed $120k all in, with 5k in reno, it would be plausible to "discover" another $5k issue, otherwise I normally assume +20%, which would only be $1k here...anyway:[email protected]% for 30 years: $625 a month (after refi)taxes: 300 a monthInsurance $60/monthVacancy (1400@8%) = 112repair contingency $60 a month (4%) Capex $60 a month (4%)management fee $100=$1317the repair contingency is accounting for an update/refresh of something in 5 years to max resale (floors, kitchen/bath, whatever) and backs up capex if something goes to hell early.anyway, it was just an exercise of a representative home.  

Also if a tenant rep broker is involved DO NOT give them all the leasing commissions upfront for a rougher area and tenant base.Instead have hurdles that have to be reached such as giving the tenant a 1 year lease with an option and if the option is exercised and the tenant pays on time then you release more of the tenant rep fee to the broker.You do not want to pay a bunch of TI and leasing commission to have the tenant not last and release again with heavy expenses in 1 to 2 years. 

Even if they don't exercise their right to buy, you keep the option consideration and you don't have the usual landlord hassles of tenants damaging property or calling you to fix things since they have "skin in the game."

So if you ever get into a legal dispute with your lender, the lender will most likely exercise its set-off rights as soon as it can.

I would like to find a buyer, exercise my option and do a double close and take the profit difference.1. 

They looked at me like I was an idiot.This exercise steered me back to my passion for real estate investment.

(I'm paraphrasing but you get the idea)  He has put in dog exercising areas at many of his properties. 

They typically want massive down payments (25%+) and will only give you 12 months max to exercise your option.Your goal as a lease option investor is to get into the property with as little out of pocket as possible (ideally $0) with a below market rent and a below market purchase price with as much time to exercise as you can get.

If the lender exercises this option, lender shall provide a period of not less than 30 days from the date of their notice.

This is Avery useful exercise on long term holds.