If the house sells, the fees/closing costs actually eat up what little profit there is.Normally, on a lease option, when the tenant backs out, the investor makes out because they get to keep the lease option fee.

The profile of the tenants that are interested in staying (minimum term = 2 months) during the weekdays and clearing out for the weekends include:Young professionals that work in the local town and then commute home during the weekend; Students that may be living at home and want some personal space during the week; Budget-conscious guests that have done the math and recognize that they can stay for a nightly rate during the week that crushes any kind rates and quality of extended stay hotels; Folks relocating into town and want to reconnoiter on the weekends for a home to buy; and also Well-traveled individuals that are basing in Athens Georgia as a gateway to the area going on weekend trysts anyway.Here is the language that we have in the "weekday" lease for each bedroom.

I've found the increased property tax really eats into the increased rent for higher ARV properties I have evaluated.

A guy I new at a bar I liked to eat lunch at borrowed $20 to go to the track, he won over $16,000 and the next day at the bar he had his wallet on the bar bulging with c notes and a few twenties.

@billg @josephball    before he declined my offer he stated that he was willing to take a hit.... i offered 80k but he declined saying he couldn't eat 140k,,, called back days later and said the bank was going to lower his mortgage.... i really do think its not a deal, but i just wasn't sure.  

The fees and potential assessments could eat into your profits.

While they are supposed to last longer, all it takes is one service call at $100 bucks to make up for the purchase of a whole box of new flappers... people will toss those bleach disks into the toilet tanks and those just eat up the rubber flappers in no time.

Moving costs money, a realtor will eat 6% of your profit, etc.

To get out of this nightmare you have to eat the $10k in difference you paid over FMV and then pay a realtor 6% to sell the place, transfer tax of 2% at closing (yes, you'll pay 2% when you buy and 2% when you sell in PHL) as well as other assorted closing costs.

I am worried that this will continue to eat away at profits.I still like the location and rent numbers but worried about the foundation.