If this is a HUD proprety, they have an interest in favoring homeowners over investors, all else being equal.

But as a lessee in the lease option scenario it is in your best interest to exercise that option (assuming nothing drastically changes in your life, economy, or property and the terms you signed were favorable). 

My PM said the money is guaranteed, but I stipulated that the background check had to be favorable, but not necessarily impeccable.  

In a pro-tenant state you could be completely in the right and the judge favors the tenant when it goes to court.I know tenants say they will not smoke and when it is warm they do it outside usually but when it gets cold they crack doors and windows to smoke.

I havent completed a lot of deals as I've focused on building equity in what I have, however have completed many more hours in due diligence than i care to count....HA  Plan on reworking the financing I have in place myself and establishing a LOC so I can increase my purchasing power.I'd think US Bank would definitely be who I'd check first on the HELOC since they hold your mortgage -- you'll probably receive the most favorable terms from them and would probably be easiest to set up -- they do not have any branches in Wichita, however should be something you can do online/over the phone.  

Love the area, as we have awesome neighbors, and the demographics are only continuing to shift favorable, but we are definitely not emotionally attached to the unit.Wish I had the real estate background to make this easier, but that's why I am here now - to learn as much as I can from others in order to make a wise decision down the right direction.  

If, by some chance, you do happen to find some niche lender who will do that type of loan - I'm guessing the terms are not going to be very favorable (for you) since the lender is going to have to charge more to offset the risk they'd be taking. 

There are a lot of variables, of course.The next argument in favor of starting out this way is to give you a chance to groom your skills as property manager, if desired, and develop and improve systems for easy management.

Additionally, the taxing of the rental income vs the sale of the property will be more favorable over the long run.

Here's some tips..... don't take the attitude of begging for money, they are not your buddy nor doing you any big favors, that's any lender.