I expected to use a third party to make sure the mortgage was paid.

After the auction, I drove by to see that an addition for the third bedroom had been destroyed by someone stealing the aluminum siding and the rest of the house was destroyed by copper thieves and a tree that had fallen on the front.Lesson learned:  Know what you are bidding on or don't bid!

Consider any due on sale clause filing an option.Owner occupied, have a mortgage originator qualify the buyer.Do not put contingencies in an option that require performance, like paying rents agreed, it will invalidate the option making it a purchase contract, an optionee may not be required to perform in any aspect under an option.The lease and option are separate contracts, the lease may require performance, like paying rents as agreed.A residential tenant may not be responsible for repairs, IRS requirements.On a 3 year option, it will be better if you were to pay $3,600 as seller concessions to closing costs, she must pay pre-paids under most mortgages.

My wife is pregnant with our third child.I have never had a problem with any of my 5 previous loans for purchase, refinance, and a HELOC.  

Now, if you have any two of those numbers, you can calculate the third number. 

@Alfredo Crespo Keep in mind that the lender will NOT allow the borrower to take any money if a short sale is performed.

Got my hands on a couple of performing notes well seasoned and excellent pay histories for 2 condo units in Florida.

Reit's if you look over performance over time tend to be really volatile.

Personally, I'm a Self-Storage Guy, so I'd perform a basic feasibility study to see if Self Storage Would work in this market, and if not, then pursue a conversion to the larger units.  

I won 2 units now (live in one) and have an opportunity to buy a third.