Just to add to it, there are many good books on the subject, as well as as a few very good podcasts you should check out in addition to BPs.Continued success!

@Or Yeger Yes I agree with Dian I worked as Investment Analyst for a Private equity, for a while and Did a lot of Land Banking and NPN, the only thing I disagree is the returns try more like 3.1% in this current market. also be careful cause, some people that may sounds knowledgeable, may really think they are but don't, know specially a complicated subject that not everybody in Real estate knows like NPN.

After diving into the subject a little more I have found that I also have an interest in learning about vacation rentals as well. 

I keep hearing the laws are more strict in Texas for lease/purchase and subject to's..we just want to make sure how to do things the legal way.

Also; No homes like this have sold recently (last identical home $365k 2014) and there are 500 NOD and foreclosure properties nearby.If I can pay past due on loan and take property subject-to I can use the property or rent the property.For my wife's business, fine property on a street with similar fine properties.

Any income your properties produce will be subject to tax.

Back on the subject, I didn't drive by the house, so can't speak to the integrity of the foundation.

@Stephanie Irto on an unrelated subject, can you forward a contacts for good property inspectors in the San Diego area.Thanks

There is a net passive loss allowance for residential rental property that let's you take a deduction for up to $25K in losses from your rental activity subject to income caps.Are you saying that you don't have any other income and can't use the net passive loss allowance?  

., as well as lots of podcasts and blogs on the subject.