Make certain that whatever income you derive covers your costs of owning the property, plus a profit.Check to see whether the value of other area properties have increased or decreased in the past five years.

Remember all seller financed notes are purchased at a discount (depending upon the terms, buyer’s credit, etc.) .... so there must be enough profit to cover the spread.

Try and cover all the fact being discussed.

You might try this free site.http://www.homeradar.com/ It gives comps for most areas, there are some areas it doesnt cover, but it is really good site.Mark

They can be safe transactions, they can work, but I have yet to meet anyone, I mean anyone, including attorneys who have boilerplate L/Os, that covered the bases sufficiently.

However I also wrote in the lease contract that the refrigerator, washer and dryer are there ONLY for the convenience of the tenant and will not be covered by maintenance.

Also, if you do lease options, I like having a home warranty because in the agreement I have a clause that any repair under $400 the tenant must take care of themselves anything over $400 will be covered by the home warranty.

I have enough in reserves to cover any vacancies and plan to keep the rentals for the long term.

It is so tough to cover everything else, that you never think that in an instant, an emergency can wipe you out.

You can pay the lowest payment, usually starting around 1%, reason you you would want a product with 1% is because if your renter moves out or leaves you are still able to cover the mortgage payment without draining your personal accounts.