The title is then in your name until he exercises the option (if he ever does).

The lease payments do not go towards the purchase of the house, so renters still need to be able to save money and qualify for a mortgage if they exercise the option to buy.

Best, ChrisChris, my recommendation is to perform your entire due diligence the same way regardless if SF is available or not.

To date, that property is one of my best performing ones.  

This is even more crucial in the short term rental space as income and performance can vary wildly between property managers.

You have to read the ordnance, but typically there is a ‘permitted use’ which is the zoning class, then there are ‘prohibited uses,’ and in between there may be some combination of ‘’conditional uses’ or ‘performance standards’ where you can potentially use it for another authorized purpose.

It really depends on the tenant and can they be trusted to perform this work.

@Kalin Stocker, I had that negative cash flow for 36 months on a Lease Option... tenant-buyer said he planned to exercise early, but waited until the very last day to close!

-Construction of new 1,000SF home - 2 bed 2 bath I will be the GC (will receive license for FHA loan), and my friends, father and I will be performing all of the framing, windows, flashing, most MEP, insulation, dry walling, painting, finishing.

I would need the test performed on an individual lot.