The tenant-buyer will pay an option fee and/or down payment (5%) for the purchase option.If you search here on BP you will find many threads on this subject (search on rent-to-own) and what you can and cannot due w/r to Dodd-Frank, SAFE Act, and other financing laws.You will have to really screen these candidates well - both as tenants and as borrowers. 

If your interested in finding a safe company to interview that can properly educate you on roof systems and the options you have, go to GAF.com and enter your r zip code.

Some lenders use to stay away from some appraisers like the plague until the rules changed, same thinking by loan officers.Yes, appraisal understandings and techniques can be very valuable.

Safe rents but lower cap rates.Contrast this with the Midwest or the Northeast where you can pickup rentals for well under $100k in bad/recovering/gentrifying/undiscovered neighborhoods that produce amazing cash flow but many more headaches. 

I like relatively safe urban neighborhoods with good access to transit and a high walkability quotient.

@Bill Gulley knows more than I will ever know, especially Dodd Frank-Safe Act-TILA.

Kristi, My father taught me to swim the old fashioned way, he just threw me into the American River one summer day, sink or swim, it is amazing how quickly you can learn to swim under those conditions.I used the same technique when I started my investing the same way, I figured I would find out what I needed to learn when I ran into a problem and believe me your a lot more motivated to find out the answer when your standing in quicksand.

Sounds like you're the pilot safely on the ground...nice work!

Hopefully this all works out safely :-). 

I'm going to use a bit of analogy here...For a real estate investor, a spreadsheet or calculator is a tool...Just like a skill saw is a tool for a carpenter...As a carpenter apprentice, you should learn the necessary 'skill sets' and 'crafts' to safely and responsibly use your carpentry tools to provide a professionally finished product for your clients.As a new real estate investor, one of your main 'skills sets' or 'crafts' that you should develop is the ability to analyze the financials of potential deals.