I am seeking advice on the best way to profit from this deal without violating any of the "rent to own" or "lease purchase" laws like Dodd Frank.  

I tried to include all the pertinent information below:Rental Income: $13,200Rent: Currently has a tenant on one side at $550 per month without a lease – I’ve made it a condition of the sale that the tenant has either signed a new lease with my property management company or delivers that side vacant; other side is not rented out due to required rent ready repairs; rental comps in the area show between $550-600 (I’m being conservative and assuming $550).Expenses:Vacancy: 10% ($1,320)Property Management: 10% of gross rents ($1,188)Property Taxes: $2,065 ($905 for City of Memphis, $1,160 for Shelby County)Property Insurance: $450 per year Repairs and Maintenance Assumption: 2% of Property Value per year ($980 per year)Utilities: separately metered; all paid by tenant except for lawn mowing at $25 once a month for $300Advertising: 6% (roughly ½ of first month’s rent) $792 per yearDebt Service: Based on $49k purchase + repair price, 20% ($9.8k) down, 5% 30 year fixed is $2,525 per yearLocation:This is probably where most of my concern is coming from: Western edge of Hickory Hill, Memphis, 38115; major cross streets: just SW of Clarke Rd and Winchester RdAcquisition:Purchase Price: $42k, seller to pay closing costsRepairs: $7.5kTotal Acquisition Cost: $49.5kARV: Large range of comps in the area, best guess is $60kFinancial Metrics:Net Operating Income: $6,105Cap Rate: 12.33%Cash Flow: $3,580 per year, $298.33 per month, $149.17 per unit per monthCash-on-Cash Return: 36.5%Do you think it's a good deal?

My plan is to buy foreclosures for a low (but modest) price, flip it or make some nice reparations, and sell it for as much profit as I can.

Thought the majority of Owner Financing is done through other investors.

Or use the profit from the rent to save on the next down payment?

I have to adjust the profit in order for the purchase price to change.

At such time the price of the dirt has appreciated so much that he was able to sell out for over twice the purchase price to a major home builder who tore down the office building and build a 24 unit townhouse development.

Choice #1: Pay off the mortgage $22,000 + Rehabilitation, which cost about $18,000 (i did research,  and own the property.place the property on section 8 ($2500-$3000 monthly profit).OrChoice  #2: Repair the property which is $18,000(maximum), and just rent the property out to a tenant.

For the majority of them selling with a lease purchase won't work becuase they either need the mortgage out of their name immediately to qualify for a new house or they need the cash for a down payment on a new house.

., you will have to give up 50% to 75% of the profits as the price of your education...but don't forget you're still getting paid for learning.