By Tuesday the adjuster had met with my property manager's maintenance manager and completed the claim so work could begin.Also important, I live in another state so I was not able to be on site and the entire claim did not cost me anything additional out of pocket.

Pete is a smart guy and charges around $175 annually.

John,You do not need all of that.What you need is a good commercial broker with a network of good lenders,title,etc.Each one of those types of assets of triple net you mentioned have their own finance structures.For example a pharmacy you can get in with 5% down and non-recourse with a 25 year term and amort.There are no rent bumps in almost all cases until the option period kicks in and it is minimal.Pharmacies are more like an annuity that you will own free and clear after 25 years throwing off good cash flow when it's paid off but being next to zero cash flow during the term..Until then you get depreciation.The lenders will usually go to DSCR of 1.01.With restaurants most are recourse unless investment grade and the lenders want a DSCR of 1.25 to 1.30.With restaurants you typically achieve rent bumps of 1.5 to 2 percent annually but because of DSCR are putting down 20 to 25% of LTV.How much money do you have today so far??

Owner Owes $85,000PITI is $794.00.Owner lives in another state and home is vacant.Our Strategy:[/b]RESIDENTIAL LEASE WITH OPTION TO PURCHASE AGREEMENT©I believe the RESIDENTIAL LEASE WITH OPTION TO PURCHASE AGREEMENT© is the Agreement used between ourselves and the SELLERRESIDENTIAL LEASE1) Rent: $ 800.00 per month (Based on current rents in the area)2) Lease Term: 12 months, beginning September 1, 2012 and ending September 1, 2013 .3) Maintenance: Buyer/Tenant will be responsible for maintenance and repairs of the property, not to exceed $200.00 per incident.OPTION to PURCHASE4) Purchase Price:$89,9895) Option Period: 36 months, beginning September 1, 2012 and ending September 1, 2015.6) Option Consideration: $10.00 All Option Consideration will be credited in full toward the purchase of the property.7) Rent Credit: Buyer/Tenant will be credited $400.00 per month toward the purchase.8) Closing Costs: Purchaser will pay all allowable closing costs.9) Expiration: This offer shall expire on August 9, 2012 at 12:00 midnight.10) Inspection: This offer is contingent upon physical inspection of property and subsequent completion of a formal and signed Residential Lease with Option to Purchase Agreement.MEMORANDUM OF OPTION to cloud titler Tenant/BuyerWith our Tenant/ Buyer we will use the following documents:OPTION TO PURCHASE AGREEMENT© which cannot be assigned.Purchase Price: $93,000Option consideration: @5% $4650.00Rent: $900.00Lease: 12 months, renewable x 3.RESIDENTIAL LEASE AGREEMENT© Unassignable.Your critical analysis of this deal is highly appreciated.

I also plan on only using cash flow from the properties for maintenance, upkeep or down payments.

So, abandonment and maintenance issues are not at the heart of this ED scheme in San Bernardino county.

Also, since these properties will most likely be condos (making sure that the HOA covers the roof and exterior maintenance), do we need to get some sort of insurance outside of regular 'condominium insurance'?

It is a townhouse and i will pay a monthly maintenance fee that will be placed in escrow and will cover the exterior of the building and the roof if it becomes damaged.

Interesting, but the comment about about maintenance being higher than any other commercial type property tells me they had never managed a hotel/motel!

They required rentals to be registered, an annual fee, etc.