In this part of the country, homes are not inexpensive.

Before I let someone do an option to purchase, they must go through a reputable lender and verify they can perform in the time frame.

I very much keep on top of them when something is happening that needs to happen in a certain time frame.

I have never specifically used options to tie up real estate, but have traded stock options and thought I would throw in my .02 cents on risk.Any option is simply a contract between two parties where one party pays a monetary amount up front (premium) for the right, but not the obligation, to purchase some asset at a set price over a specified time frame.

And the homeowner's insurance in Colorado is $400 for $1,000 deductible versusu $900 for 3% deductible down here.The above paragraph is submitted to all of you CA, NY, NJ and other out of state investors who keep hearing how inexpensive houses are in TX and how easy (not) it is to cash flow down here.all cash

Because I can travel inexpensively I can easily look at deals nationwide.

I have plans to film our next flip and make it a "how to flip a house" start to finish, including looking for the houses, interviewing contractors, putting together a time frame and budget, and showing the progress daily.

I let all contractors know what time frame I am going to make the decision in and if they don't hear back from me by that time... they didn't get the job.

There are several reasons that it is so inexpensive.

Maybe it is my side rather than what you posted.Here is a simple way to think about the 2% rule or the 50% rule.They are effectively the same or at least try to focus you the same way.50% of the gross scheduled rent per year will go back out in expense.