The program puts you through some very good and prudent due dilgence exercises, not just with the houses but with the colleges and the area as well.

The Deal1)House (3bd 2ba 1100sqft) comps for around 80,0002)Put under option for 30,0003) The house does need repair and I have done really conservative repair estimates, coming up with a number around 30,000 just to be on the safe side and not give any surprises to a buyer.4) I was looking to assign contract, after exercising my option, for 32000Any suggestions on a different way to market this deal or am I looking at the wrong angle and marketing a non-deal.

Im not against options, just be careful, the reality is very few people exercise their option, like 2-5% (they just cant clean up their credit and save) and tend to forfeit their option money, even though you have a contract, do this a few times, and you will build a reputation, and not a good one even though what you are doing is legal, and everyone consented you will still be considered the bad guy for taking their option money.

It’s a great way to learn more while doing other things such as exercising, driving, etc.Get involved with a local REIA groups.

I noticed that too, but the whole exercise doesn't add much value IMO anyway.

I quit that exercise even on my rentals after seeing the negativity that customers had.

Take the gross rents, divide them by two, divide that figure by the asking price, and that will be a good screen test for whether or not the 10% figure is close to accurate.If it still seems like the capitalization rate is okay given your metrics and how it trades relative to other properties in the area perform a much richer due diligence exercise.

My research indicates that it brings relatively little value for just one property, but maybe a worthwhile exercise for the future?

@Steven Tenaglia You're both to blame for exercising such sloppy business procedures.

Never count on the tenant exercising lease options.