This type of financing requires the projected income of the property, determined by a local expert, to sufficiently cover the monthly mortgage debt.

Additionally, getting in with a local broker helps as they can shop around for you.Umbrella insurance is pretty cheap to add on in my experience, so I think it’s worth it.

I am not sure if this is the right place or not but I wanted some input into any obvious issues with my lease option offers to the tenant buyer that earns plenty of income but doesn't have the cash right now and wants to improve credit before purchasing but would like to lock in the price as our market is still struggling with inventory. 

Yes, there are ITIN DSCR lenders out here for $100K and up DSCR loans.More info on DSCR loans:DSCR loans won't use your income to underwrite the loan.

If it's done right and the layout makes sense you recover your money on the added value of the house, not in the monthly additional rent.

Is it worth going through when the average yearly rate of s&p is about 10%, which is pure passive income?

Certainly open to other ideas and strategies, it would just require additional diligence from my end given my level of comfort and expertise would be lacking in other areas.

then offset your mortgage with the rental income from your tenants?

It is a block-by-block city for sure where the income disparity can be huge within just two blocks.We have investors with about 40-50 deals, many of them BRRRRs in the Philly area, since the pandemic.

If you have 1 vacant unit, you still have incoming rent from the other.