That looks horrible.

It has has towns (villages really) with horrible poverty rates but it's largest city of 350K has poverty rates that match the national average.LA County?  

I expect that you can't re-option the property to someone else in this case.Something that I like about the lease option contract is that the horrible event of an eviction results immediately in the awesome event of a new L/O down payment in your pocket.

Let's just guess (horrible guess) $13K so we can keep numbers round.You end up with $112K + $25K + $13K = $150K.Then start doing a search for multifamily in Little Rock and the surrounding suburbs and I see 13 multifamily properties under $150K.  

The unit was in HORRIBLE condition. 

Originally posted by @Jacob Perez:@Chris Habets If any party other than Conservatives are in power, it generally trends negative for business owners & landlords.Right, because the last 8 years were horrible for business owners and landlords....

These properties don't seem to be in horrible shape, could maybe use some fresh paint and carpets but nothing that would require a large amount of capital and exceed the comparable market values.

You go in and try to get the property turned around and see how hard of a push back you get from the tenants.If it turns out to be horrible you dump it back to the seller.

However, that's still not very comforting and I feel horrible.

From where I sit and what I can see, besides horrible craftsmanship, looks like a water issue.