I know that this is their best option, and I try to encourage them to exercise that option if it's possible.

This Execute, Rinse, Repeat exercise adds you 1 solid property a year.If you have additional savings based on having your house partially rented and cash flow off the properties you're accumulating, you can look to use that money for down payments on other more turn key properties to more quickly grow your portfolio.

I'm not so sure that the fact the lender is waiving its right to exercise its option to call the note immediately would prevent it from exercising that right at a later date.

JP even if the lender is in a state where they do have a right to exercise or enforce a deficiency judgement, sometimes you can do a short sale and use that as leverage for them to release any responsbility on the seller once the home has re-sold, instead of them getting absolutely nothing if the house just goes back REO.

I'm considering offering a lease/option on a low-end SFR in Las Vegas ... have been told by various contacts the percentage of tenants that actually exercise their option to buy the property is somewhere between 5 and 25%.

Not sure if they would exercise that right but they can.Brian

You will need to negotiate how much of the lease payment goes towards the purchase price when you decide to exercise the option.

I agree that until we know true numbers, it's just a math exercise, but I'm appreciative of all the great advice.

And while it's true that if the buyer couldn't get a loan and was unable to exercise the option the rehabber would keep the option fee, that also would result in potential lost opportunities for the rehabber/seller (other potential buyers, possibly even willing to pay more), all while they continue to pay holding costs.

Or get an option agreement and then assign the option or don't exercise it.