Im no help as I always pay private investors a set interest rate for a set time frame.

There are so many more requirements to Lease-options / executory contracts in Texas that fee simple is one of the lower determinations.

The higher the deductible the lower your overall premiumbut get quotes on all the deductibles you are interested in.

I have listed foreclosures in the past and typically there is a time frame that the personal property has to be kept, but only if it is over a certain dollar amount.

Closed in 7 days.Purchase price $127kDownpayment $31,750Closing cost $5kReno $13,500Holding cost $6500 Asking price 185k, after 1 month lowered to 182k. 

Add replacing or fixing a toilet, lawn care, sometimes even insurance and it seems to be most costs would be a higher percent the lower the rental amount. 

There is no loss unless you pull your money out when the value is lower.

RE is always local, but the rehab deals in my area a nearly impossible to find unless I'd lower my margin...I generally use the 70% rule. 

how close to the next lower class?  

I've noticed you can find duplexes and fourplexes in Cleveland easily, but because of higher property taxes I'd need to buy in lower C / D areas to make decent cash flow (this is just my initial research).