We're looking to convert our current home into a rental with the option to purchase.Would anyone happen to have any thoughts, tips, recommendations on structuring a lease option?

Hey BP Fam, two questions for you. 1st question; is there a huge difference in the rate for a conforming conventional loan for an investment property vs primary home?

@Alexander Zurn Thanks for the tip.

If you've never flipped a home before, that is a huge risk for your mom to take. 

@Rehaan KhanPlenty of very good real estate attorneys out there and especially good ones who will tell you you all the risk involved - which is why many shy away from many of the “creative” financing deals going on right now which are just unqualified buyers finding ways to buy a home and those attorneys do not want to be part of the lawsuits later on.

I plan to access some of the equity in my home, along with cash on hand, to purchase and reno property.  

Step #PhaseStep1DiscoveryTalk to experts and learn (process, tips, design tips)2DiscoveryCreate social media and document story3DiscoveryGeneral research - budget considerations, financing options, permits, regulations, tax considerations4DiscoveryMarket research - competitor analysis, analyze guest reviews, market trends5DiscoveryGather ideas/inspo (blogs, articles, youtube)6DefineCreate brand and vision7DefineCreate guest requirements (e.g. coffee maker, natural light, near activities, etc.) and prioritize must have, nice to have, etc.8DefineSketch idea for look and feel (architecture and design) - map out the floor layout9DefineConsult an architect (is this needed?)

The listing broker is going to try and sell you on paying a price that makes sense given the projected or proforma rental income, a dynamic that is the equivalent of how the listing agent on a SFR might try to sell you on paying a price that bakes in future/anticipated appreciation, or "look at this home's potential!" 

But I also know the market here is very competitive, and the medium home value is very high.

I normally say stay close to home, but if you're in CNJ, it can be difficult.