Some investors decide the way they will go about it is to keep the existing Homeowners insurance in place and be added as additional insured to that policy.This is a dangerous game you should avoid and here is a reason why.If it is discovered that the ex- owner, the first-named insured in this case, no longer owns the property, expect the insurer to deny any claim based upon the fact the policyholder no longer owns the property.

one thing ive learned is how dangerous rationalization is.  

I understand the lease option approach, but if the original owner couldn't pay their mortgage for some reason, wouldn't it be dangerous/risky to lease option it back to them?

I think they are trying to keep newbies from failing, and as an investor I wouldn't want them to hold my money, but I am not a newbie or a slumlord.Here is the danger...

“Tier 2 issuers’ reporting obligations under Regulation A would suspend when they are subject to the ongoing reporting requirements of Section 13 of the Exchange Act, and may also be suspended under Regulation A at any time by filing a Form 1-Z exit report after completing reporting for the fiscal year in which an offering statement was qualified, so long as the securities of each class to which the offering statement relates are held of record by fewer than 300 persons, or fewer than 1,200 persons for banks or bank holding companies, and offers or sales made in reliance on a qualified Tier 2 Regulation A offering statement are not ongoing.

Denver Colorado up about 25% rent increase, 20% income increase, 25% mortgage payment increase and 13% more renters with 7% fewer households.

I know about the dangers of 401k loans such as losing your job and having the loan due in full within a short time frame after losing your job.

It didn't look to be dangerous at all (just a little sleepy for our preference) and we were happy to see that one of the homes we were looking at had a well lit street.  

These figures usually come out on par with just getting a standard lease at less money with fewer man hours involved.

Now you have a happy tenant and better utilization of fewer machines.I am a "ready-shoot-aim" type of manager.