Sellers need to feel they didn't loose.

I wanted to cover a couple aspects and see if anyone can help tie up loose ends.

Also the lack or higher risk factors will be noticed more and you will loose some buyers with higher wind risk.

He took them to court and lost so for several years this place has been without any HOA.I pay my own taxes for my part of the building and land so I'm not in risk of loosing it even if the other people don't pay their taxes.

I also use a score sheet as part of my screening process and if you are late then you loose a point. 

One of them is out job and their child (with pics) had a medical issue and undergone surgery so I was bound to be more understanding .  

It can be as little as $1 or a really substantial amount - typically a similar amount as earnest money.With an option you know that you will be able to buy the property as agreed and the seller doesnt have to worry about finding another buyer, as they have collected an option fee you would not want to loose.

I am currently in saving mode and am excited once I can start the actual investing .Their is so much to learn, I know I'm bound to make mistakes but that is just part of the journey .Thanks for the welcome!

If you find something out there higher than 70%, it's not a conventional mortgage so likely doesn't have the nice rates & terms that are usually associated with conventional loans.Conventional appraisals on 1-4 unit properties will use the Sales Comparison approach, so even though you've nearly doubled your income, you're still going to be bound my recent comparable sales.

It's a small initial cost $5k I'm not sure it's allot to loose the place will cash flow at close to $2k a month once rented so worst case scenario I make my money back once or twice and then loose a friendship.