Chances are, the tenants will do a crappy job maintaining the house (they are renters at the heart of it all) which is one of the "benefits" and they also usually don't exercise the option to buy (so you don't get that inflated sales price you were planning on getting).

If you take any negative action against a tenant in response to them exercising their rights that would fall under "landlord retaliation".

You are only allowed to attempt to exercise your right to purchase once, and if something goes wrong your purchase right is nullified completely.IMO, in most cases it would take a great deal of appreciation over the course of your lease in order to make it worth paying the full right to purchase price of the house that Home Partners buys for you to rent. 

I'm just thinking I would be extremely cautious and exercise extreme due diligence if I personally went that route right now.If you acquired more properties yourself, directly, are you comfortable with renovations?

@Zach Edelman I would exercise great caution as it pertains to Waikiki and any other market on Oahu that is showing up as a great place to invest.

The best thing you can do is go through the exercise of a developers costs and exit strategy, target what they want to make on the deal, and then back out their profits to see where you need to price it.

Try a simple exercise with him of listing all the financial considerations and purchase/management activities that you can anticipate today - who will do what, who contributes what - consider putting all this in writing in some sort of operating agreement. 

That should come from the why.If you have not already done so read Anthony Robbins awaken the giant within and do the written exercises in the book . 

My biggest concern was the "Due on Sale Clause" but I have had an off the record discussion with my mortgage banker and he put my worries to ease (along with all the other threads that say the clause is never exercised).

However, when you dig deeper, or speak with local turnkey providers or real estate agents in Memphis or other cities, it becomes more of an exercise in seeking out which areas to AVOID and which areas are really able to provide a safe haven for your investments, and more importantly, peace of mind.