Apparently they handle all property repairs and maintenance independently and have maintained a perfect payment history, even throughout the pandemic.Lease Option Agreement:Effective Date: November 1, 2022Terms:Purchase Price: $165,000Non-Refundable Down Payment: $10,000Lease Term: 3 years (ends October 31, 2025)Final Payment: $158,000 balance due upon term completionMonthly Payment: $1,150 (no rent credits)I didn't see this to be a deal because if in a the best case scenario my $25000 would walk away with 2400 which is about a 9% ROI.

I buy where people want to live, not where property is cheap due to low demand.  

We did live in the house for 2 of the last 5 years, so we wouldn't have to pay capital gains tax.

On Page 134, he lists the following when analyzing a deal:Sales Price: $132,490.00Sales Expenses: $17,000.00Loan Balance: $55,004.72Total Invested Capital: $35,950.00Profit: $24,535.28I agree with his thought process here when he calculates net profit, but I'm trying to verify the net profit by adding up all the sources of income over the past five years in his example by doing the following:Appreciation over five years=$12,490 (see chart on Page 133).Cash flow ($297.73x12x5)=$17,863.80 over five years.Loan paydown: ($60,000-55,004.72)=$4,995.28 over five years.Sales Expenses are still $17,000.Doing the math, profit= $12,490+$17,863.80+$4,995.28-$17,000=$18,349.08There is a $6,186.20 difference from the net profit he calculates.My question is: Is this $6,186.20 difference due to the forced appreciation gained in the property from the rehab he does in this example?

The last thing you want to do is have a rental go bad and then lose your primary residence due to a deficiency judgment because of a bad rental property.

Taxes/Expense:   flow through our personal taxes.Questions:a.

And or just walk away and leaving yet another dilapidated house in the hood. they need to pay prop taxs and utls etc..

Plus financing and tax prep will be cheaper.

Condos can be tough to cash flow due to high HOA fees...and special assessments. 

What is the current tax on the property?