Since your preference is buy and holds plus flips, I added the below links for your review of these REI niches. http://www.biggerpockets.com/renewsblog/2013/01/04/how-to-rent-your-house/ (house rental guide)http://www.biggerpockets.com/renewsblog/2013/02/22/buying-rental-property/ (how to buy a rental property)http://www.biggerpockets.com/renewsblog/2014/01/07/flipping-houses/ (step by step guide to flips)To be more successful, you simply have to work on the other elements to progress your REI pursuit.

Structure their ownership as preferred holders with a return of 10% to 15%, (preferred pay out).  

.:) My preferred way of selling a lease option, or any owner finance deal for that matter, is to create a single asset entity, either an LLC or a land trust.  

Can you guess which ones I prefer?

Also, he seems reluctant to kick them out (My guess is that they are his family friends.) and would prefer that they stay.

I prefer to negotiate openly and honestly on price before getting a property under contract. 

Guy Gimenez what would you prefer an investor/buyer do?

Here are some of the numbers:Estimated ARV:  $150,000Judgement against homeowner:  $116,000Estimated repairs (based on drive by):  $50,000Target purchase price:  $55-$60,000My first preference would be to get the lienholder to agree to allow me to assume the mortgage at $.50 on the dollar.  

I am especially interested in finding out where the class A and B neighborhoods are, and to find out what the local demographic prefers in terms of units to rent. 

I am currently buying apartment buildings preferably 30 to 100 units or more, occasionally 15-30 units.