The Buy and Holds in that area have pretty good margins right now even in the inflated market.

A change of the HOA to $300 (which is possible and still good for the loop), would wipe out all profits. my 2 cents.good luck

That what is I prefer; lower profits but less headaches and consistent paying tenants.

Property management companies have no such incentive; they usually PROFIT from evictions and turnover while the property owners suffer.Interesting Chart, BTW!

The basic concept of a lease option is that people want a good deal of money for the property, but it's close to retail, so flippers and landlords (generally) don't want it, because it doesn't allow for profit.

Then I thought I'd just pay off my house in CA and pocket the rent as profit every month.

You will give them the land to build and they will build improvements on it and you guys split the profit and equity? 

He also spoke about getting a partner to put up the money for that, you doing the legwork, and then splitting the profits 50/50.I also heard about calling the craigslist landlords and asking them about wanting to sell.

Your exit strategy and profit sharing is the most important in my eyes. 

If you can make a profit on flipping it, or create some positive cash flow through renting it, I say go for it.