Even if not, if the market goes down, the option price suddenly doesn't look so hot and they're out 5K.Add to that the fact that it make infinitely more sense for a person with credit problems to rent cheaply somewhere for a while, while they fix their credit problems with no risk of losing 5K and no risk of the market going down.You said: "on another note; all the people that I know that do these type of deals do purchase the home below fair market value and therefore start out with equity. part of this equity is then transferred to the end buyer which will setup a lease option.

If that is the case in your area, you need to be priced below the market.On future deals, I would try to buy at even a bigger discount to guard against a looming housing market meltdown and recession.Mike

Do those filtering systems work for a problem like this?

Its not like most jobs where there seems to be a large filter between both ends.

at 98k, was it below market significantly?

the bottom line is this -make offers that will increase your likelihood of making money on the deal. 70% below market + repair costs is just a guideline.asking price 100kAFTER REPAIR VALUE - 130k130k - 30%= 91k91k - 15,000 in repairs/holding/other costs = 76k offer price.that's a general guideline.

How does that effect getting a property below market value.Im just looking to hear how others are making out!

And how will I know how much house someone would be willing to finance reguardless of the % below market value I can actually purchase the house for?

The key to pricing a successful flip is knowing what your competition is listed at and pricing slightly below.

If you know your market and you are able to buy below market and re-sell the property, then that is something else.