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).

It's clean, but keeping the place in show condition is a pain in the @55...I'm completely new to this so please bear with me :)Our PITA on the townhome is about 815 / monthOur ITA (is there such a thing?)

Rates and points will be painful.

Groups are a pain and want many bathrooms and don't want to live in a perfectly good house if the local cops are anti-noise.

Just get a good attorney to look over your contracts and pick them apart.I have bought properties on Option, Contracted a buyer......both sign cont that say they will sign all neccessary contracts to complete the transaction with the end buyer.

As it is, the info just points the way, while the future makes liars of the students with some frightening regularity.The "Rules" don't hold in all circumstances, but they give warning signals to those who like such alarms going off in their head.

I haven't been steady in the gym since I had one in my condo building 6 years ago.I feel your pain, brother!

These days, in many areas, you'll have to give some seller concessions, so figure another 2-3%.If you're wholesaling, you'll also want to include your fee.So, with all that, you can back into the maximum buying price.ARV- sell closing costs (8% of ARV, up to 11% with concessions)- holding costs (hold months x monthly costs, ignoring painful surprises)- buy closing costs (2% of buy price plus points on loan)- rehab costs- whole sale fee= maximum purchase price