You also need to take into account if your competition is waving the security deposit for qualified applicants,charging a pet fee or not,paying for any water,sewer,trash for the tenant included in the rent,including appliances,or giving a rent credit on move in, and many other factors.Rent rates can look good until you see how many landlords you are competing with,quality of the product,and incentives given driving down the net rent before debt service and depreciation.

There seems to be another wave of foreclosures coming but I guess the wildcard is whether the government/banks finally decide to do something real with the mortgage modifications.

Yes, and I double checked with Satchie Carvounis (SDIRA consultant at Security Trust) that is correct as soon as the property has been 100% distributed to the IRA owner they can treat it as their own and don't have to worry about IRS guidelines.

I recently resigned from my job and want to focus on RE whether that is back in Holland or in somewhere else.Unfortunately the RE market in Holland has not corrected itself very much and is still stable (although not a lot of volume).

You’re in a major city yes it may be getting into the slow months but there is a hundreds of thousands of people someone will bite if priced correctly.

If I understand you correctly, You are holding (or will soon hold) a SFR with a 35K mortgage and an ARV of 110K.

My mtg will remain in place.The contract for deed sale varies from state to state so make sure you have correct language in your CFD contract.I like it b/c I am getting nice chunk of change upfront and will be making interest over life of loan as well.

Doing the option correctly, means that you would need to record an memorandum of option with the county recorder, to demonstrate that you have equity in the property.This is a win win, the family gets the money they need ASAP, and you have the opportunity to sell and maximize your return on investment, while never "owning" to the property.Like JD Rockefeller said: "Own Nothing, Control Everything!"

I really appreciate the quick reply's Nathan and am planning on really deeply analyzing this deal to find out if what I'm doing is correct.

My E&O coverage does not cover me for a lease option deal.This all came about because the attroney general of Texas was getting so many complaints regarding contract-for-deed transactions.The legislature put the brakes on lease options along with contract-for-deeds.Chris is correct,Title must transfer to the buyer in 180 days from date of contract.If not, you are left open to possible DPTA violation.