In no way am I associated with Renovation Realty, but I live in CA and it looks like their business model is growing in my state; they just opened a franchise office in the Bay Area.Apparently they rehab your house and help you sell it for the higher ARV. 

The company you referred to does have a higher sale price to rent ratio but they have the best team in the country for their business model and that is why investors are willing to pay that price.  

From what I've seen, kitchen appliances are normal sized (without dishwashers in the older models).  

I am interested in fix and flip, so more a short term investment, and buy and hold.I assume there is a difference btw the both models in term of taxation.Thx, Andreas

We always enter into an Agreement of Purchase and Sale (APS) with the intention of purchasing and taking possession of the property.

These leaseholds are not uncommon in lots of states and they were, as mentioned above, used to minimize the cost of building the property which in turn lowers the potential sale price of the units.They are not free passes to foreclose or obtain possession of units.  

Any one can throw out claims like you have above, but I'd be very interested to see your financial models and assumptions to see how realistic they really are. 

Some people incorrectly associate the model with MLM.

Remember that doing an eviction is to regain POSSESSION of the home. 

You need to make sure they assume the same responsibilities as well by engaging with them to either comply with your screening process and be added to the rental agreement as jointly and severally liable, or move on.Also, when handling the security deposit, remind all the tenants that the security deposit stays with the account and will not be touched until the end of occupancy when all parties move-out and return possession of the unit back to you.