Your lease may be somewhat dictated by HOA by laws and rules.

There are too many other factors (and costs) that dictate rent for any neighborhood.I do agree that if I were to sell the property - it has to compete with the other properties selling in the neighborhood including new construction.

Just because you don't like the terms dictated by the seller does not make him shady.I'm sure if he thought there was a possibility of you being able to buy the property he would be all about getting you in there.Depending on the MLS, there are certain things you can and cannot say in an advertisement.

Warren Buffet's Advice Addresses this Issue:A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.

One is plan A and one is plan B ... the numbers and your goals dictate which is A and which is B, but if you structure your deals in such a way that either would work profitably, you have an additional exit strategy with plan B in case plan A doesn't work.

Start with a budget—this will dictate the marketing options available to you as you get started.

Now I can see contractors having a problem with this, but at the same time, my experience dictates I'd rather not work with someone I can't trust and demands to profit off every dollar I spend on materials. 

Lastly, i wouldnt let someone else dictate what a "good" deal is. 

Highly recommend you have a qualified attorney in your state draft the operating agreement.A multi-member LLC taxed as a partnership might be the way to go.Partnership agreements are pretty flexible and "waterfall schedules" can dictate how profit/loss and distributions are allocated during the life cycle of the LLC. 

Proper business practices dictate you issue a notice to pay.