While we trust the contractor, funds are still treated as if they were comming out of a bank, lien waivers, etc.

Dodd-Frank and the SAFE Act effect sales to owner occupied buyers.They cover any financing arrangement, call it what you like, if a dollar is credited toward the purchase price from any payment structure over any period of time, it's a financing arrangement.Next, you are putting way to much down for a lease purchase, no wonder the seller is flexible, residential should not exceed 10%, actually, just under that as the IRS may treat the transaction as a disguised sale.Next, a lease-option is the worst way to control a rental property.

Now it's a business and an investment to my future and I treat it that way.

No you would just treat it as if you were buying the home off MLS.

This means they're much more likely to treat it well.Why does that matter?

So even if a rental is fully rehabbed with a tenant in place at the time one is considering to buy that property, one should still treat it as if it will need regular maintenance and experience vacancy.

Steve,Just curious, why would it be treated as self employment income?

He was awesome to me, but treated them like crap.

One piece of advice that I keep on getting over and over again is that RE investing MUST be treated like a serious business, and not some hobby you partake in on a Saturday.I feel like I should lease out an office space in a commercial building, so that I am physically removed from any sort of leisurely environment.

I have always insisted we treat them fairly and be consistent in our management of them and the property.There was a period of time when we asked departing tenants if they would rent from us in the future if the opportunity presented itself.It was a feel good question soliciting a feel good response but didn't generate anything actionable we could use to improve our operations.