There are many property managers that charge 1/2 month's rent for tenant placement and then 8-10% monthly fee, so 5% and 37.5% isn't that unreasonable if he's actually handling the management and you're still receiving rents.

Having a local agent would be able to handle this for you and the commission is paid by the seller.

Summary ejectment procedures must now be handled in district court rather than magistrate court necessitating hiring an attorney to evict a lease option tenant for breach.

when it comes to personal tax return, how will this be handled if he does not generate income?

I agree mgmt. companies can be a pain, but I've posted on here before how I handled that in 4 different states and 5 different areas.

Since this is your first time, it may be very wise to seek legal advice from an attorney and even let the attorney handle the entire process.

Making sure you put down a decent downpayment and having some cash reserves to handle any issues that WILL arise.

I'm getting into wholesaling with a mentor and I have just gone through all the wholesaling I can handle on biggerpockets.

You'll be hoping to break-even on a month-to-month basis, so if things go slightly wrong or you have a repair, how will you handle it?

As a buyer, do you negotiate an agreement with the tenant on how to handle the interest (addendum to sales contract?)?