To clarify: Mark Loeffler's rent-to-own book describes a process where a tenant/client 1. pays a deposit, 2. makes monthly rent payments (with portion going towards eventual purchase) and 3. there is an option to purchase property, usually after 2-4 years at price fixed at beginning.

Assuming I don't take objection to the defect and decide to move forward with the closing, the addendum states that the bank can still refuse to close at which point my options are either to take back my deposit and move or sue for specific performance within 30 days of default of the contract.

You don't want to get it under contract, put a huge down payment down, and then not be able to sell it and lose your deposit.

With a deposit, we were only getting applicants who had red flags on their background check and rental history.

Make a checklist of required documentation for each property you plan to promote such as rent rolls, cancelled checks or bank deposits for rent paid, copy of the lease, proof taxes are current, etc.

Listen, I would rather pay a tenant a months rent , reminding them that they can use that money for the deposit on their next place, than to let the eviction run its course.

But that's part of what the fat paycheck and the FDIC-insured deposits that produce all the ROE come with.. a highly regulated environment..

Even when starting an eviction quickly it can cost far more than the deposit to get somebody out, especially if they know all the delay tactics.

(I did take 2 months deposit, but obviously cannot spend their security deposit.

They auto deposit to my bank around the 15th.