I like knowing that after the lease is up, the tenant may buy it, which is good for me, and if they don't buy it, I get to keep the option money so I still win?

It's not impossible to win in this arena...but you've got your work cut out for you when relying on normal channels for acquisition capital.

Most other methods of investing require much more risk (putting up your own money or credit rating) and are unable to just walk away if the deal doesn't pan out so a greater percentage of people there are looking for win/win scenarios.

So let's say that the winning bid is $320,000.

Look at both the big and small players.

@Matt Powell  this model is VERY old news  its how the turn key industry worked prior to the GFC in 07 and 08 when lenders STOPPED doing investor refis for all but the VERY RICH.now as money is rolling again they are just bringing back basically the same products that existed prior to 08 nothing new mysterious or earth shattering here. the trick though is getting more than 4 refis and you can get up to 10 if your VERY well off and qualified or you go portfolio which new players are entering the space  B2R Colony etc.

So its win-win for everyone.Questionsa) Are there any legal implications for this.

We are planning to pay cash for it if we win the auction and we will move and it will be our personal residence.i appreciate any comments or help thanks

The winning characteristics are that they have stable work, are beyond the age of wild parties, have a long-term (3-7 years) local commitment BUT they do not plan on living in Lincoln forever.That last point may seem counter-intuitive, but because they do not want to live in Lincoln forever, they are unlikely to buy a home and move out of the unit.

Rehab and sale needs to be done w/in 5 months, or more fees will apply.