I use a sensitivity analysis as well in my pro forma so I can tell how aggressive I can get or how bad can things get before I consider it a bad deal or lose money.Can't say I haven't lost out on deals just bc of speed... one time I couldn't get a hold of my partner for an hour to decide what entity to submit the offer or hold title in and when I call back the listing agent they had literally just taken another offer.

My buddy @Christian Cramer lists homes for 1% or something crazy like that... if you can find an agent in your area that knows what their doing and will offer you that kind of deal it could be the difference between kissing money and making a good return (Just don’t use a bad agent just to save the commission, if they don’t make sales they’re probably not worth it)

That's not bad, considering I don't like the property and there is a lot of upcoming work that will be required on it in a few months when the tenants leases are up... 

I have 3 small kids, no money, bad credit, but I am determined to flip a house.

Your tax professional will lament about paying $2000 in taxes one year v $200/yr over 10 years (it's the same damn number), but we're talking about two hundred grand, so this shouldn't be a hard choice. 

Only bad things happen to the house, the tenants when landlords, and lease option sellers attempt to transfer maintenance to tenants. 

(keep in mind the bad areas you might have problems with break-ins and squatters. )

I would rent to them indefinitely if they turn up being cool though.My big concern is with foster children if things landlord tenant relationship are bad with them in the house and I do issue a notice of non-renewal what would be the likelihood of an eviction if they refuse to leave. 

If you "tell little white lies" there's a reasonable chance people will find out anyway, then you'll REALLY look bad!

Lessons learned: always maintain cash reserves for maintenance/repairs, fire bad contractors pronto, be friendly with renters but not friends, a decent buyer's agents do not make a good seller's agent, I must always keep my thumb on the numbers and eyes on the contractors, and as with anything else -- you get what you pay for when it comes to contractors Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?