People break incidental stuff or use it in ways you dont want it used and it is a pain to replace.

@Abe Mazliach While this seems like something to possibly try to get out of, I look at it this way, they may be saving you a lot of pain and money down the road.

I did a quick look at some underwriting guidelines and here is where I see the issues.Long drawn out painful too much information version -The R2 zoning would not be a showstopper, but it is worth taking note and reading the appraisal carefully.

It's a pain and it takes time but probably worth doing.EDIT:  Sound advice from a guy that sucks at selecting reliable contractors... 

I would prefer to have PM in place as well as a tenant in place, or at least know that the deal will not close until the tenant is in place.For full transparency provide a list of comps dated within the most recent month and only about 1-2 mile radius max (we know you need to make money on the sale but would help establish trust).Communication seems to be one of the biggest pain points I read about so maybe focus on that as well.

Any pain experienced or any advice you can share?

What a pain in the butt!

We in Australia are suffering now from your sub-prime meltdown and it is starting to cause a lot of pain, but from what I read not quite as much as in your country.As property investors we are conflicted aren't we?

It's a matter of enduring short-term economic pain versus long term pain.

So while I'm not going to say whether or not you should go through with it, I'll try to provide you with some things to consider when making your decision.Pros:You can get the payment off your booksYou can sell the property for full price, when it doesn't appear that there is much interest right nowAssuming you are requiring an option payment (which I would suggest), you will get some additional cash nowSo basically the Pros can be summed up in that you have the potential to do pretty well financiallyCons:Lease options typically require less landlord hassle, but at the end of the day you are still a landlordThey could trash the house and then not buy itThey could stop paying and make you evict them, costing you time and money (there is also the possibility with lease options if they aren't structured properly that the courts could deem them to be a sale rather than a leasing arrangement in which case you would have to foreclose instead of the less painful eviction).