The annual insurance cost of $300 is way too low, I'd add another 0 to that.

2) Is there a portion of that nonrefundable deposit that is considered the cost for the lease option?

Expenses - Insurance at $50 per month looks low. 

I would always prefer to use as low a down payment as possible, but I understand that being located 1 hour from Indianapolis may present some challenges.I currently have a W2 income in Lafayette and am a licensed realtor in Indiana as well.

Once you have that you can qualify for a low money down loan and buy a double. 

And cover the closing costs.

But I think more because it is not a cost of the sale. 

You may be thinking of the FHA rehab loan, where you can wrap renovation costs of up to 110% of the purchase price into the loan. 

In an example like that waiving some late fees to avoid eviction costs, additional nonpayment until eviction, turnover/vacancy costs is well worth considering.

Greetings all,We’ve all read methods on how to analyze a real estate deal, running numbers, estimating rehab costs, incorporating taxes, capital expenses, etc.