You are so very correct.

Moreover, the real cost of this rental is $80K IF the $20K repair estimate is correct.

Michael, Fred is correct, educate yourself fully until you feel comfortable taking action.

You are correct that one of the best things about being a RE investor is that you have control (most of the time).

Is it correct that we/she won't get the benefit of deduction on real estate tax and mortgage interest payment because it is rental and her status, right?

Iv'e learned more here in the past couple of months then I have in the past 2 years, hit me up on the cell, I think we should both take Ryans advice and check out a few clubs, gotta get you and the family over to the house also soon for some food and :beer: , call me.

Lease option has some really great appeal to it, if done correctly.

Correct, anyone can sell there own house, they do not need a license and other brokers can not go after you, hence the FSBO.

But unfortunately, you have to sit there and guess what the correct discount rate would be to end up with zero.I find that in excel, simply using the rate() function to find out the rate of a FV, will give me a compoundable rate of return, that makes no account for discounting or reinvestment.

Some places in California are having an enormous correction.