I finally found a 3 bed 1 bath REO property in Griffith, IN which met all my criteria so I jumped at the deal and made an offer.Since then, here is a short list of surprise complications which made me wonder if we would ever get through it: -seller (bank) had some initial reserves with me using a loan even though the listing said conventional loans were fine-seller made me prequalify with their bank even if I wanted to use a lender of my choice -struggled for a few weeks trying to get a lost W2 from previous employer for underwriter -while in underwriting I needed to supply some new document ever couple days (or so it seemed), go on a conference call with my banks and credit bureau, write nearly 10 letters of explanation, until I was ready for them to ask for the blood of my firstborn -after the home was inspected it was vandalized when someone broke a bedroom window -bank refused to fix the window and lender wouldn't move forward until it was fixed leaving me to do repairs on a house I didn't own-lender nearly backed out because I wanted to use money loaned to me for the down payment-lender rejected first couple insurance providers I supplied until we finally worked something outSo here we are, after all that I'm cleared to close and begin fixing the house up and getting it ready to rent (BRRRR). 

I know the seller may think their 1 year lease option on their home will sell, but you don't know how qualified that buyer was, or how that deal was structured - and no matter how well you qualify (you can even make them sign a blood oath and give you their first born child as collateral), you're still looking at a 50-70% likelihood that the other buyer will actually buy their home - I don't like gambling on a 20-50% chance that I'll lose. 

I have seen it all. and if it was not for me back stopping these arm chair rehabbers there would be carnage and a lot more blood in the water. your concept is good but I think its wishful thinking for all but the most experienced.. and not a model someone new to the business can just go out and create.. they just don't know what they don't know..

Dealing with them anymore than that will cause hair loss, heartburn, and high blood pressure :-)Good luck and feel free to reach out if you have additional questions!

Dave,    I couldn't have said it any better 👏👏👏Relationships and referrals are the life's blood of the RE industry.

Like sharks smelling blood.

I looked at buying multifamily, but I couldn't get into it yet - I am in Portland, OR, where it is a blood bath right now.  

Lots of bad blood there apparently.

They need a specific license and are required by the state to get regular blood tests to be sure they're not inhaling too much lead dust. 

However people usually dont know the blood, sweat and tears that went into getting that money.