Nowadays, I would imagine the stringent lender pay down requirements for the complex owner mentioned above and the fact that individual loans are now actually underwritten properly, would just plain make this strategy unattractive altogether.

Agree with @Ben StoodleySeen as low as 9% total yield - 2 pts, 7% all day, but with stringent underwriting.

Also, how are you measuring returns (NOI, cash on cash, is it similar to MF investing?)?

Nobody here on BP in this discussion is attempting to meet appraisal guidelines, accounting measure and such.

The regulations were very stringent though, but I went through a large brokerage firm.

But I don't think appreciation vs inflation is the correct measure.

On top of what Scott mentioned, I understand that the control on landlording operations is more stringent in Urbana.

Your best bet is what is mentioned above--a private loan of sorts from a family member or friend.Also, less stringent lending opportunities do exist, like FHA.

So that is how I would measure whether it makes sense financially ... how does the lease option income compare to your financing costs and debt service.  

Okay the Thursday updateOne framer in to visit, due to time, he will be back next week to measure the followingMaster Bathroom width, length and Ceiling height where we would like the ceiling to go to (it currently terminates about 7 ft up.