Simply put all your terms and conditions in the purchase option portion of the lease agreement, give a 100 percent rent credit and set the exercise date 91 days into the future.

He is re-imbursed based on percent completion minus 10% retention.

From what I understand, [b]unemployement is around 8 percent, but for college grads it is closer to 4 percent.

The reason I am asking is experience level.From your post it seems you are not well versed yet in multifamily and apartment buildings are very different from renting separate houses.A ton of variables are there that are not with the SFR rentals.Realistically you can get a 10 year loan term with a 25 to 30 year amort. with a specialized multifamily lender at around 6.5%.The lower sales price such as yours will be a problem.Some lenders will do it but want 75 to 100 more basis points (1 percent higher interest on the loan).You can find local banks with 3,5,7 year loans but I would not want those to hold long term because of the refi bombs and debt service being higher without much paid down.If you have a 10 year loan with decent down you can pay down extra so that the principal is very small when the loan comes due.

Someone renting rooms to others in there own home or boarding house may or may not have residential rental property.Needless to say if the property wasn't properly classified from the beginning assets were probably misclassed and depreciated over inappropriate life times.

Through your experience at Praxis, how many go into foreclosure and of those, what percent do investors not get their principal back?

Look really hard because it is normal that it is tough to find a 2 percenter that is worth owning.

I wouild also be hesitant to invest in a duplex with COC return of 11 percent (2400 annual rents / 21,500 DP *100).This would be a good deal for a SFH locally, but then, in my area, you will not find an SFH with an ARV of 105,000 that would rent for 1800/month.

What percent of their appasal?

They want %25 percent down.