You'll need money for the rough times or if you're smart there wont be any and you'll turn that bad boy...I would never lease option a property knowing how to buy it with seller financing and subject 2 or flip that thing concurrently and make the money that way...Heck if you're going to LO it then buy it Sub2 and wrap that thing...So many ways to do what you want to do...As for what to say..

How are you able to offer the seller a 5 year L/O if that is the case?

I have to agree with buying Sub2 however I am personally not a fan of L/O or for that matter reselling where I am attached to the performance of the buyer.I like massive income and not passive income.

The L/O could trigger as well.

If this were a L/O, then they could cash you out sooner, so they would be good.

1) length of ownership longer than 15 years2) equity base of 40%-100% if flipping. 5%-25% if L/O and if L/O bring ownership years to 7.3) Start with out of state first, then in state and then in city.4) Filter SFR, Duplexes, Triplexes, and Quads.

-Negotiate L/O with seller (Sign option and lease contract)-Find tenant buyer (Assign option contract and sign new lease)-Close and deposit check?

•LO or Sub marginal buyers should filter lower equity.

Yeah it is really important I always stress that to borrowers to plan ahead but the reality is that most LO's meet borrowers and clients at the last minute when no planning can be done and we pretty much have to wing it the best we can with what the borrower is prepared to and able to show at that given moment.With 2-3 months or even 1 year advance planning the borrowing process can work like a well oiled machine.

Rather our comments here is to perhaps help you seek a different lender and LO because he or she is giving you bad advice.