We help homeowners negotiate with their bank for more favorable terms.  

The spread would be my fee for my time spent finding the deal and negotiating . 

Him signing a new lease is going to be a negotiation, and the odds of him coming up with a security deposit are very slight, and it would be hard to keep anything out of the security deposit when it comes time for reconciliation; I have a feeling that move-in and annual inspection documentation is sparse as well; the place "has always had a dog smell", certainly from the time that you collected the security deposit.Consider contacting Gary Link's office to take his "Landlord Class" which will give you access to his lease, (there is a cost for the class, not sure what it is anymore).  

Your monthly payment would be around $800, and from here you have better negotiating room.

I want an air tight transaction and will have an attorney review and give me their seal of approval once I feel like I have thought of every possible negative outcome for myself.So far the possible negatives I have been able to think of are below and my intended solution will follow:Dodd FrankFinding a tenant without a license (I would like to market to those who have high days on market)facing penalty for performing broker transactions without a licenseI would market, find motivated seller, let them know that I can provide them with a cash offer, they can sell with a realtor (pay the commissions, spruce up costs, holding costs, etc.) or they can sell on lease option and get someone better than a regular tenant in the home.I would use standard docs specific to my state but they would be modified to include the below:Letter of IntentI would have them sign an intent to sell where in it, it would state that the property will be purchased via an option and the option will be in the name of a land trust.it will state that I as an owner and friend will be allowed to assist in the finding of a tenant, negotiate the lease terms, and be allowed to show the property without any compensation and at my own expense.LeaseMy lease will have verbiage stating that the tenant will be responsible for repairs, and normal up keep / wear and tear associated with the property up to $250 (this is my benefit I sell to the seller so that they don't have to deal with every tiny little tenant issue.Tenant will be responsible for all utilities and they are to be in the tenants namewill be allowed to extend twice, each for a period of 12 monthsTenant needs to inform owner of extension no less than 30 days before lease expirationthere will be no mention of the option within the lease, PITI will still be owners responsibilityWaiver of Liability associated with LeaseI will have a document created stating that the owner is solely responsible for the final approval, screening and placement of a tenant and that there will not be any recourse for myselfOptionFor the consideration of $1 (with receipt from trust to the owner) the trust will have the option to purchase the property no later than 45 days after the expiration of the lease.The purchase price will be agreed upon within 5 business days before or after the date of the lease expiration and if both parties are unable to agree upon a price, the owner and trust will each get their own licensed appraiser, average the two out and split the costs.this will be an option / right of first refusal hybrid and will very clearly lay out the expectations that there will not be any seller financing, the transaction will be in all cash or if the beneficiary of the trust so decides to get a loan from a reputable / licensed lending institution they need to provide a pre qual letter within 14 calendar days of the lease expiration and mutually agree upon a closing date.I would then sell my beneficiary rights to the trust for $5k, and exit the transaction.

Is this simply the last "counter offer" from the bank, during a previous negotiation? 

Analyze, inspect, negotiate, and do my first deal.I know this is by no means a very in depth plan, but it is enough information right now to give you an idea of how I want to proceed.As for the advice I am looking for, I wanted to know how successful some of you are when it comes to direct mailing, and if you think this would be a good marketing vehicle for a first time investor (Oh yea, I should probably say that I am planning to start my career in real estate investing by wholesaling to help generate funds to do bigger deals)?

The asking numbers are still negotiable.

so I'm currently negotiating a possible deal with a ms who's  getting old and wants to leave the wife with something so here it is a duplex 2bd 1bth both units occupied with brand new leases.

The investor coming in won't have much to negotiate with.