Rest assured, I have money options I can exercise to close escrow that would leave me in an uncomfortable position... but I can do it. 

Sound like in 4-5 years you will have 3 paid for properties the ball will really start rolling then.

I think some think it's a crystal ball, not really, the meter is simply loaded with experience.

Let him know you're interested", but maybe don't get into the specifics of a ball-park number until you have worked on ALL the facts you need, behind the scenes.

As far as the building guys saying you need to bring the house up to code, in DC, if you open the walls, you'd better be prepared to update the guts of the house, because if the inspector sees a problem, you bet the $40k a year bureaucrat will exercise what little power they have in life.

Should I Snow ball my mortgage since this is more of a long term investment of enjoy the lil earning now?

I've been reading and learning a lot and am trying and am excited to get my financial ball rolling by getting my first deal done.

More from initial option money, rent, and back end exercise price.Warning - if you are broke, don't do sandwiches.Rules of thumb:Pretty houses 85 - 90% LTV, 15 - 10% Equity; Tools to use are leases, lease options, sub2, wraps, land contracts, etc.Pretty houses 0 % LTV, 100% Equity; Installment SalePretty houses alot of equity but some existing financing: Sub2 and a note, lease purchase, seller gets new 1st mortgage and you give sub2 and a noteIf your exit is lease to own, use a RMLO for your buyer.

This means no extra rent applied towards a downpayment (which is financing) as part of the lease and no rent incentives tied to the exercise of the purchase option.you need to ensure your tenant / buyer is capable of affording the house and obtaining a mortgage (from a traditional lender) when/if they exercise the purchase option;the option consideration could be the downpayment (this may no longer be true under Dodd-Frank and/or SAFE act ... best to ask someone like @Bill Gulley) in which case you do not want to make it too large (3 - 5%).  

In addition to the wonderful advice and resources given, I'd like to add that one of the first things you can do (with little to no experience) are answer the following questions (actually put the pen to paper though or else the exercise is moot).1.