.* Greater percentage of O/O homes in these areas, so you'll also have a strong possibility of having an exit strategy to a retail buyer, should you want to exercise it at some point.* Fixed costs are a smaller percentage of the gross rent.

However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument.If Lender exercises this option, Lender shall give Borrower notice of acceleration.

A lease purchase agreement as well as a lease option agreement have nothing to do with the SAFE Act unless you are planning to carry back the financing if and when the tenant/buyer exercises the option to purchase.If the tenant/buyer obtains their own financing from a third party lender when the option is exercised, then your deal is not subject to the SAFE Act.This is a common opinion in the REI community, IMHO.

With the option in place, you can turn the property around and exercise it if it makes sense.

It is treated as a deposit, and becomes part of the sale proceeds when the option is exercised.

In a case like this, they may have been putting this out to see if someone was going to balk at the addendum and shake them out of the process early.Buying a REO is an exercise in frustration and patience.

I would be more concerned with them being unstable and up and down and up and down (volatile).In many cases not having the rent is BS.They just decided to pay other things before you.Just like people saying they don't have time to exercise but when you dissect their schedule and allocation of time there is plenty of time there.

If a lender fails to exercise their DOS rights that is fine.

I think this is a good lesson as to why the 2% rule/CAP rate exercises are just preliminary tests you can run on a property.

Exploring ways to reduce taxes is one exercise in the exploration of those options.