Paying down principal is one way to prevent growing too fast too soon and it lessens the chances of you overleveraging.  

Perhaps it's paying for damages or taking out their compressor.2nd It seems to me that you would have a slim chance of winning if you actually took this guy to court.

If you don't use rent credits and use a simple lease and a simple option to purchase agreement chances are very good.

If so, bundle up a few and give them to a commercial lender. it will give you a chance to get more 30 yr loans.I know @Mark Ferguson is getting close.

Gray enough in my opinion only not to chance it.

Thanks Johnso in plan EnglishWhat are the chances of this seller getting a new mortgage for a new house he wants to move into considering he has good credit [600 plus] no tax liens and a strong tenant buyer.Here' s where Im going with this John,, .I dont want to put this deal together unless my seller is likely to get his loan for a new home and my tentant buyer can get financed at the end of a 18 to 24 month option period.Otherwise Im not going to put the deal together.I want to stay out of court.Lease purchase sounds peachy but it depends on having your buyer and seller get what they want.I am certainly not going to solicit and invest time with a seller if see its unlikely he is going to qualify for a mortgage on a new house.Lets be honest John I can't  expect every seller to handle this themselves ,many candidates are going to look to me to find them a "Can Do" mortgage broker,,,Any help appreciatedDave DoyleLos Angeles

Is there any chance to find a portfolio lender that would like to finance properties there?

I believe they are sold together...The Book on Flipping Houses and The Book on Estimating Rehab CostsI haven't had a chance to check them out yet, but I've heard many great reviews.

Go with a community bank or credit union.  5/3rd is too large to take a chance on you.5-10 branches max i would say.

Thank you for your input I do appreciate them.Joe,I will definitely see if your approach works for us because as I said we want to find ideas that work to.increase our chances of being successful.So thank you very much!