I like the idea of a bigger price and larger monthly rents until the option is exercised but the new Frank Dodd regulations may hinder that.

I think doing this as an exercise is good practice.

This place just has pretty decent returns and huge demand so thought would be a good learning exercise.

You improve condition, usually with private funds - jv partners - syndication, like paint, carpet, fixtures, raise rents, improve profit centers of laundry coin operated, etc. and then in 2 - 3 years either sell your option or exercise your option, buy it and keep it.

- but got it all done, built some goodwill with all the tenants and my handyman, and.. even got a little exercise!

This can't happen at Tax Sale because they only have 1 sale a year, if you postpone the TS it will be another year before it can be brought to sale.Bottom line is YOU as the buyer need to exercise extreme caution as it is very easy to get burned, sometimes extremely burn. 

We do not allow showings until the product is at the cleanup stage/pre staging but we have had success drumming up excitement and offers this way.To the other posters point: you do need to be careful in exercising this option.

I figure this would be a good exercise for you to share your experience with us.Thx.

If it's just to obtain an option price for other deals that implies to me that you really don't intend to sell.....so what do you do when the end buyer wants to exercise that option?

, I would increase my cash flow potential while they were renting and I would get to keep their "option to buy" money if in fact they decided to not exercise the purchase.My understanding is very elementary at this point and would like some of the gurus to share a little pro and con sheet with me.