I have one other inherited tenant that has a recent felony and they are a wonderful tenant that I will likely keep for many years.I have other applicants, but but wanted to see what other folks thought - if nothing else, it's a fun thought exercise. :)

I realize a sample size of one does not even qualify as a sample but I do not believe the study.  

Said another way, if you bring it to the attention of the 1st they will likely exercise the DOS.

you should for sure do a little more research on what APR is and how to calculate it.. lets use sample numbers to help you here.100k  10% apr   =  10k  if you pay him / her back in 6 months you owe half of 10k or 5k total that equals 10% per annum.If he / she expects  10% in 6 months on 100k IE  10k  then your paying 20% interest ..

Would I do that exercise again?

Here is a sample of mine that I use when working with a Capital Investor and I'm running the Procurement, rehab and sale of a property.

So the question comes down to can you make a model that, over a large enough sample size, be within 2% of the home price, and you have enough of the right kind of capital [long term oriented and willing to ride out the ups and downs of a bad quarter or year] then you can't help but make money since home prices generally go up and to the right.

After reading a small sampling of BP forums on the topic it's my opinion that most traditional investors don't understand what it is or have had poor experiences with wholesalers.

This benefits the buyer more, since depending on how it is written, it can lock in a future price and if the buyer would benefit from exercising the option he may, if the numbers run against him he can back out. 

So my long and draining exercise of evicting my tenant is about to finish (or so I thought), after the deputy has scheduled the lockout.