So while I'm not going to say whether or not you should go through with it, I'll try to provide you with some things to consider when making your decision.Pros:You can get the payment off your booksYou can sell the property for full price, when it doesn't appear that there is much interest right nowAssuming you are requiring an option payment (which I would suggest), you will get some additional cash nowSo basically the Pros can be summed up in that you have the potential to do pretty well financiallyCons:Lease options typically require less landlord hassle, but at the end of the day you are still a landlordThey could trash the house and then not buy itThey could stop paying and make you evict them, costing you time and money (there is also the possibility with lease options if they aren't structured properly that the courts could deem them to be a sale rather than a leasing arrangement in which case you would have to foreclose instead of the less painful eviction).

I see a lot of interest and questions about LLCs and business entity structure.

You know it's getting bad when the grafitti on the bathroom walls is so badly misspelled that you can't figure out what dirty word they were trying to convey.On the other hand, correcting a person's grammar or spelling without being asked to is an act of hostility and not only causes hard feelings, it makes people stop posting.Contrary to what the grammar police and spelling police dearly believe, it does not make them look like superior beings because they understand the inner workings of spelling and grammar.

Also, make sure and stick to 3 bedroom, 2 bathroom cookie cutter houses.

It needs work as far as updates to cabinets, bathroom fixtures, and some paint, etc.

The depreciation on rental properties (residential 1-4 units) are calculated from the value of the improvements and divided by 27.5 years.For example, lets say your rental is purchased for $200,000 and the land is assessed at $40,000 and the structure (improvements) assessed at $160,000.

Make sure you close before the deadline so you have time to put your plan B in place before the contract expires.Just make sure you have a good attorney or title company and document everything.There's all kinds of ways to structure deals.

It's structurally sound and we have experience with rehabs, so that part is fine.

Don't forget major structural changes, ie, removing load bearing walls.

Groups are a pain and want many bathrooms and don't want to live in a perfectly good house if the local cops are anti-noise.