You can also look online, but I find it's easier when you can physically see and touch the items.After you have completed this exercise a couple times, you should have a really good idea what your material costs will be for most aspects of a rehab.

- Taxation of Lease Purchase is covered by no better teacher than Al Aiello, - Lastly avoiding equitable interest can be achieved by not delivering an Option to Purchase directly to the Tenant on the Lease Option; rather you can hold an option to purchase in escrow to be delivered to the tenant once say 24 months lease has been completed, then tenant has 90 days to exercise their option (get financing).

Hence there are many valid reasons a lender will not exercise the DOS rights.

We are not a real estate broker, our role in the transaction is to simply present properties to investors, which may come from our real estate broker contacts, or our developer contacts.

Is pick up exercise and lifting.

Also, does anyone give any of the option money back if the tenant doesn't exercise the option?

Thanks Mike, atarget, and Jim for all of your tips.I agree it's not a good deal, but this was a great exercise for me to do the analysis.Is there a Cincinnati REIA meeting tomorrow?

I would have the LLC exercise the option and then sell the LLC to the developer.

One person suggested I have a small role that would serve as tie-breaker.

Lease/options can force you into a foreclosure situation even though you are the landlord.That said a lease/option can still be a good idea.If you use a rent credit that reduces the rent to below market levels the lender could have issues later when the person goes to exercise their option.