I know a pure option needs a firm strike price.

Learn all you can from BP and especially how to look at the deal purely as a financial decision.

My "concern" (if you could call it that) would be around the economy of Stockton (i.e employers there, what the growth potential is, how will an investor get appreciation in their investment) - but, for a pure cash flow investor, comparing it to the Mid-West with similar concerns; I'd say this is a fabulous region to consider. 

or bad (if you bought those SFH at the peak in a sub-market like so many cities in the US today, you're underwater still).Not to say you can't achieve diversification with RE as well (i.e buy a REIT); to me, for pure income / cash flow, that's my preferred direction (buy a REIT; I get good diversification, it's property managed, I don't have to worry about maintenance or repairs or whatever else; just a solid cash flow / income stream in the asset class (apartments, shopping malls, whatever else) that I choose).For appreciation though, I think of RE like picking individual stocks or a business to buy; if you have the time, the skills, and the patience - you can make outsized gains compared to the overall market.

But if it's purely a cashflow investment you're looking at, I would keep looking or offer a price where the numbers are more in your favor.

I believe Quest is purely a custodian for self-directed IRA's. 

If I decided to set up both units in the building to airbnb, any money I make from the second unit would be pure profit in the hundreds to thousands of dollars each month. 

Very difficult to cash flow after I get all my cash back out.Class B:  $150k in (and back out again between 3-12 months)Return:  $800/monthClass B:  $60 in (and back out again between 3-12 months)Return: $350/monthClass B is in a couple of different marketsClass C: I don't do Class CKeep in mind, these returns reflect None of my cash (money) is still in the deal by the end of that first year...so this is all pure, as in TRUE, profit.

@Gerald W mcgee  I think the bigger threat to those that try to wholesale houses without buying them and or that don't purely assign contracts is the states cracking down on unlicensed activities as we are seeing in Ohio  and Florida etc .. especially those wholesalers that try to tie up listed properties and fail to perform... the RE agents get pretty miffed with this activity and it will only take a few to start filing complaints

Well, just using the numbers you gave it would take 12.5 years ($15k/$1.2k) to just break even and then you have the lost investment income from the $15k for that time, so from a pure investment standpoint I would suggest against the garage.