First I only go see houses that are three or four bedroom and they are in good school districts and the quiet streets that's the first thingNext thing I do is I walk through the rental and act like a renter asking the basic renters questions to landlordsAnd then I do a classic what if statement and give a leave behind on lease to ownMr. landlord you got a nice place here and I think the rent you're asking 1100 is fair"I want to ask you a question and if you hate the idea of them just let me know, but what if I could give you 1100 a month for about oh 24 months and then at the end of that period of time buy the property at a fair price, ""would that be something you would even consider thinking about or maybe not?"

@Keith Belzner There's nothing wrong with your calculations, the offer you're thinking over could work.The problem is that you're making a classic newbie mistake of trying to craft an offer based on what you think the seller might need instead of what he actually needs (or believes he needs).

Here is another book you might enjoy that I wrote for the Holidays"The Lease Purchase Christmas" https://www.dropbox.com/s/3geekhxraagabk5/%235%20T...A dickens classic with a Real Estate Twist:-)Enjoy.  

This is a classic case of walking over dollars to save pennies.

@Don Harris  this case you posted is a classic  SUB TOO equity skimming case.and why I always say SUB TOO for the seller is extremely dangerous and for beginners with little money and they do this it can get them in hot water like this guy as well.start defaulting on a bunch of SUB toos and you WILL have a problem.. some do it intentially IE get into contract rent house skim rents never pay on first.. knowing they are not on mortgage until bank forecloses them out.

I would also be extra diligent in screening because you are at risk of taking anyone to fill a vacancy, which is a classic mistake.

To me it appears to be a classic investor value trap. 

I have a deal in my pipeline that is a classic situation of an older person passing, heirs wanting to sell quick, property being a mess in terms of clutter, never updated, full-gut kinda job.  

Agreed, buyers are most often looking for the classic 3/2 although here in Florida with the snowbird factor and empty nesters/retirees there is probably a larger market to sell 2 bedroom homes than other places

Probably original hardwood floors, beautiful classic design.