i had a large portfolio all over portland spreading from LO all the way to N. portland and believe it or not NONE of it cash flowed.  

If there possible L/O deals, then utilize that strategy.  

He is willing to do a LO.

If you need to comply with any code requirements, make repairs or take care of any legal issues, a lease isn't the best way to go, thoses issues need to be addressed by owners, this guy is out of town.Could do a L/O, there is also straight seller financing, sub-2, wraps, contract for deeds that will give you much more control over the property.

Did some good reading on Cooperative L/O.

@Joseph Bodek I'm buying leads from home buyer network and zbuyer and largely the leads are only good for LO / subject-to but I just can't convert these optimistic folks into a LO purchase.

I think that was the thing, it's not like I was out directly asking for the money, but more like telling people about my business as a real estate broker and how the market was doing great, and how I would pick up almost anything I can get my hands in in this market, etc; lo and behold, the lender then offered to finance the deal I was indirectly trying to finance.

Bryan Hancock is right on the money.I consulted with my lawyer regarding L/O in Texas after reading the book "Buy Low, Rent High, Sell High."

On the other side, when buying on lease option, not selling, should you consider buying on a LO and doing repairs as a viable strategy?

I don't do L/O's, so this seems optimistic to me.