However, generally self-employment also needs to pay FICA tax (15.3%) , but rental income actually is exempt form FICA part.

I'd like to know about the number break down, risks/rewards, how to find investors that lend, how to find properties that both sides can be happy about, how this method compares to other low/no money down options, timelines, legal, etc...If anyone has any book or website recommendations please let me know!

So when I listed both units on Craigslist I had somewhere between 30 to 40 showings and through the tenant screening company I used to perform the background check, the employment history, the credit check and so on, I was able to hand pick based on the evidence before me who I'd choose to inhabit the units.  

The buyers are living in the home they intend on purchasing, and working on qualifying for that loan as soon as they can (but they can't obtain financing right now because they're self employed, new in job/area/industry, or need minor credit repair before they can get a loan).Any lease option investor that doesn't embody the mantra of this, will fail miserably, and quickly.

It's totally my fault; I allowed an alternative method for a month, and the tenant took full advantage of my willingness to work with her.

Most of the rehabbing you're seeing is other investors doing the "BRRRR" method, flippers or home owners fixing up getting ready to move.

I started out using the first method where I basically tried to say that I could possibly help them out of a situation.

Peter,I have not seen a conventional lender offering portfolio/blanket loans in the past 5 years ... not in the residential space.We've been using a variety of the methods you listed to continue investing once our initial war chest was depleted.  

This method works for me because my rents cover the cost of paying the loan and operating expenses, plus setting aside 10% of the rents for capital improvements and 5% for repairs.  

What is your most successful method of finding the perfect deal?