This is speaking in very general rules as there are both good and bad schools on each side of that line, I am just speaking in general.  

Technically I am going in with cash but am using the 50% rule as a guideline.

This is also nice to let prospective tenants know that I will be at the property monthly; which makes them think twice if they want to do anything against the rules.

The maintenance fees have not substantially increased in 4 years and again, rents have stayed high.Just consider the 50% rule, which you can read about here on BP.

A lot of people say to go for the 2% rule, but here in New Jersey it's more like 1% unless you find someone distressed and you put a good amount of work I to the property.

Those rules might be a hair different.

It seems counter intuitive, but the larger banks have more strict rules because they are working for the share holders.

The 50% rule doesn't apply so you are going to have a higher cash flow because you aren't going to be spending 4200/mo in expenses!

You might get the $5-10k up front as a down payment but that could be eaten up by these repairs/lost rent.In the long term you might make a few more bucks, but the risk is much higher and you have a downside to potentially have to put cash into it to get rid of it, whereas you know your downside with the wholesale deal is $0 if you don't close it.Also with the new Dodd-Frank rules in effect, make sure you understand how those might affect lease options before you jump into one - there are many well researched threads on BP addressing DF right now .

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