I'm also not a fan of L/O's to buy since you have so little control, but you can do sandwich lease options if you thought it made sense.I did one where the owner bought the house for his son and financed it at 5% I/O, that thing cash flowed pretty well, but I stumbled into it and pitched it because the guy was loaded and had bought the house for his son who was a drug addict and trashed the place and he wanted the headache gone more than the money. 

We drug our feet to buy us time to get the permits sorted, and when we finally showed our plan to the court, they approved it because it was a win, win, win: The heirs got something when they weren't going to get anything, the bank got way more than they would have got in a foreclosure because we improved the property, and we made a nice pay day.

But pre-2008, most foreclosures were due to the 5 D's - Death, Disease, Divorce, Drugs, and Denial - where people end up in a situation where they are losing their home, rather than just being underwater and walking away.

Bogota during the Drug Wars?

The biggest problem we have is drugs, but those are fairly easy to screen for.

What do you do in a case like this where the seller vacates, but their adult child refuses to leave, doesn't come to the door or respond to notices to vacate the property, and uses the house as a drug den?

(I'm on a bodybuilding contest diet and rarely eat carbs so a meal like this was a big deal to me!)

While the rental income will only increase by the rate of inflation, dividends would generally increase much quicker.Let me give you an example with one of my favorite dividend-paying stocks, Abbvie (NYSE: ABBV), which is a huge drug company.

The natural / nature made version noone has ever overdosed on it or died from it(marijuana alone that is - if its mixed with other drugs/alcohol those are the disruptive toxins that can kill...) however this gets a thumbs down.  

It's just one more thing to worry about besides alcohol and other drugs to monitor.