@Joe Villeneuve , what a creative and interesting method to free that cash that is otherwise tied up. 

Not over your head at all...Congrats - you have some good ideas....What I would suggest is a prop that is lower than market based mostly on cosmetics...flooring, paint, minor drywall, possibly cabinets, etc...you can get substantial discounts & still get the 1st time buyers rates & programs & such - then hold for a few years & possibly rent it out....or another option would be HUD foreclosures - they have (in our area at least) a 10 day "owner occupant priority" - before the true investors can even bid on them....much less competition....you may want to look into that avenue as well - Whatever your method - congratulations...

Since you don't have a track record, I think you're going to have to treat this investor more like a partner than a pure investor.If you're looking for a methodical approach, Alan Cowgill has a course on this topic.

One problem I can think of is, if you owner finance for 3 years for 500K and the property is now worth 400K, good luck refinancing.It sounds like you need to buy at 70% below market value in order for owner financing to work.I think this is more a 'market problem' that is unavoidable regardless of your financing method.

The seller sold a house they had trouble selling and the buyer of your option and the house instantly gets $50,000 of equity from the house and of course you made your $50,000.In conclusion, as you can clearly see using the Lease Option and Option methods are creative ways that A Real Estate Investor or Entrepreneur can use to easily make money in real estate.

How can I go from not claiming allowable depreciation on a rentalproperty to claiming allowable depreciation without creating anunauthorized change to my accounting method.

What methods can anyone suggest for getting insulation in the walls without tearing them down?

It may not be FL specific but may help you begin knowing what questions you need to ask a FL state atty to get more of the answers you need.I dug up the thread which actually was started by Ken who posted above.http://www.biggerpockets.com/forums/30/topics/105344-lonnie-deals---then-and-now---the-original-method-wont-work

There are a couple of threads about Michigan laws (closing requirements / restrictions, etc) and I'm curious if you've been successful with any "traditional" wholesaling methods.

Choose methods that you can sustain for a while, that you think will work in your area (internet, bandit signs, direct mail, etc) and then adjust based on your results.