Just looking at your purchase price and the price you think it would sell for you are dangerously close to being upside down if the market shifts and that isn't even considering the $2000/mo it's costing you.On a side note, don't rent to friends and give them a "deal".

You have to be able to walk away from the bad deals so you can survive until the market shifts.  

(You can shift the cashflow between properties to cover big repairs if needed)I understand that people need to get in to the business and are willing to take a lower monthly rent (and house purchase cost) to get started, but it doesn't seem worth the headache to have a top line of $850 per mo, pay for property management, and hold a mortgage. 

However, it does shift roles of parties under the Option is exercised.

Initially I began my investing career looking into fix and flips, then shifted my attention to the Notes side of the business.

Initially I began my investing career looking into fix and flips, then shifted my attention to the Notes side of the business.

Initially I began my investing career looking into fix and flips, then shifted my attention to the Notes side of the business.

Initially I began my investing career looking into fix and flips, then shifted my attention to the Notes side of the business.

Someone you can look down the line and say I want a business like that.Initially I began my investing career looking into fix and flips, then shifted my attention to the Notes side of the business.

Initially I began my investing career looking into fix and flips, then shifted my attention to the Notes side of the business.