Also Since you plan to live there for 3-5 years, it’s easier to manage and maintain, giving you time to learn the ropes of real estate.That said, be mindful of high HOA fees, as they can eat into your margins and affect future cash flow.

The bear will eat you.Where can I learn to do this properly?

But remember that the kind of work the affiliates do, that will eat up all your profit in a few repair jobs.Turnkey property means that the place will be fully renovated and things working fine for atleast a few years.

@Ben ClingerHi Ben, I just noticed your post.Toledo just clarified their inspection criteria for section 8 houses and decided they wanted their cake and to eat it too...we don't have to have an interior inspection (since LMHA inspects that during their inspection), but we DO have to pay for a Lead Inspector contractor to visually inspect the exterior of the house and of course we DO have to pay the $45 fee (which is of course what this is all about).LMHA of course inspects the outside of houses along with the inside so the whole lead inspection is redundant.

They may just agree to cover them, especially if Landlord offers to eat the appliance costs if they cover the utilities.If that doesn't work and it is an issue for the tenants, I wouldn't do it.

While they do eat into rental margins the larger profit came from the sale and the added rental profit was not worth the hassle of being a landlord.

Not only do you not save anything in interest (assuming the rates are the same), but you're also eating up your valuable credit line, which is typically a variable rate and is subject to changes in the underlying index.

This is your seed, when you plant seed you expect a return, but if you eat the seed (blow your money), you have no seed to invest, (no return). 

If you are only doing a 1-2 year lease option, then I'd recommend you just buy down the prepayment penalty to 1-year and just eat it if the borrower executes early. 

In a short term, I'd eat the risk I'm not taking that for 1 year +.