I cringe thinking about that mistake. 

I quickly realized it was a mistake after i screened out people left and right.

what happens on BP is you get people with 1k in their pocket read your post and off they go.. and they get all screwed up becasue they simply don't have the reserves to handle the default situations and since your dealing in sub prime paper  ( non traditional interest rates and financing) your going to have defaults... and you may have reserves today what happens if you blow your reserves then have one go upside down.And how is it a good idea for your seller to keep a loan in their name for 30 years.. this many times keeps them from getting another loan.. they don't ( your seller) realize what a mistake it was until they try to go get more credit.there is a place for this usually in quick flips.. long term at least for any seller that would talk to me its very dangerous for them. and it is not a beginners play.. which is what those who sell HOW TO play to that audiance.. unless your saying your not in the education business and just teach people for free.so we can agree to disagree on the merits of this scheme for ALL parties not just YOU... 

I made the mistake of not doing this and I lost $7,000, I learned my lesson.

You are making a mistake adapting your business practices to satisfy tenants.

And importantly learn from my mistakes of not raising rents on a regular basis.

We've already decided that we are going to make a mistake somewhere, and that's ok. 

Starting off, regardless of your assumed knowledge level, you make mistakes and it is imperative to act to correct them quickly.

I have read that it makes sense to go with a 30-year if your plan is to rent.If I went with a lease option, I realize I could take an initial payment and increase the rent slightly, but would I be making a mistake potentially selling the house after 2-3 years in only a slightly better market?

My real estate agent says it should be ok for a week extension, but I made the mistake of googling it and saw that in 2010 Wells Fargo stated they werent taking extensions.Cons: Wells Fargo might not be taking extensions any longer, I am hoping somebody has dealt with them and knows frist hand.Pros: The owner had his water shut off intentionally which delayed our appraisalThe owner had his electricity shut off after that which delayed the appraisalThe basement flooded which pushed us to have more than one appraisal.PLEASE HELP!!!