My fear with renting is then we are tying up a big portion of our working capital and then wouldn't have enough to do anymore flips.

Meanwhile, there are small, single-family homes for under $100,000 that will get you a much better return and you can gain the experience without having your entire life savings tied up in one deal!

Has no cash, facing bankruptcy, car is being repo'd and the only thing of value he has is tied up in his home.Owes $12k in property taxesHe purchased the house CASH earlier this year for $185k.

I would have already tied it up with a short period of time for due diligence.

So unfortunately I have to say you might need stronger stats to defend you rankings

That would cut my borrowing costs but now I'm assuming a greater portion of the risk, tying up a chunk of my cash, and looking at a lower return on my investment.

Probably doesn't matter,mexcept for any deadlines tied to the effective date by a number of calendar days.  

This is essentially the same as acquiring an option to purchase a company's stock or a commodity.I would recommend having no performance ties between the two agreements and would stay away from inflating either the market rent or the purchase price of the property and applying/rebating a portion of the rent towards the purchase price of the property.  

However, the appreciation is stronger in A-class areas. 

The drains tie in to public sewer.No wood or metal framing, the structure is fully RC throughout.