@Joshua Jones I think the biggest issue is that lending criteria have tightened significantly during COVID.

May be pretty costly for an eviction and strain a relationship too.

Dash, this makes sense, especially as inventory tightens, competition increases, and spreads narrow.

I used his (monster) General Journal Entry a couple times now to close out the sale of a flip and rental property.Now that the flipper market has slowed, in my area at least, I have time to go back and do these unpleasant administrative tasks like tightening up my QB.

All kinds of rehabbers are complaining of tightening profit margins in the past several months as the RE market warms up. 2 years ago, profit margins were FAT and markets were cold.I'll take a cold market over a hot one for flipping any day of the week.

Samuel, you're picking at a market with fresh wounds, 3 years might work but I'd generally not, that's cutting it too tight actually at 36 months, there needs to be a couple months to finance and close if everything else is good. 4 or 5 years is more like it since you're looking at newly foreclosed/delinquent borrowers.Also, an option sets a price up front to be sold in the future, you don't get the equity gained over the contract period unless you state that it is to be sold at a future based price, like an appraised value and doing so puts additional strains on a buyer as to the LTV.Lots written here about lease options, I suggest you study here and close the guru books as to the marketing aspects until there is a clear understanding of what an option is and the financing issues involved

I'd rather that than a strained relationship where they don't care about my property at all.My renters also are upper income renters so if your property is lower income, then perhaps you do need to convey a no tolerance approach.

You can screen tenants, place ads, etc.You may not sweep the floor, cut the grass, tighten screws or any other activity that directly affects the property.The arrangement you're describing is a slippery slope.

Overall though, I expect my market to look much like it did in 2012, during which the market tightened up, properties sold more quickly and investor competition increased.

It's a good market, but things are tightening down on inventory.