The earnest money deposit becomes non-refundable at that point and will be held as liquidated damages if the client doesn't appear to sign Lease/Option agreement or fails to produce the rest of funds necessary to close.This saves a TON of time that is wasted in the TBer lookie loo business.

If it produces a 12% return at a certain price and you're buying for cash flow, isn't it worth that price?

Hi Silvestre Madrid ,That's not a bad idea if you're looking for a place to live AND you want to build up the equity in that property while you're living in it.However, I wouldn't go as far as calling it a true "investment" because an investment provides you cash-flow, and your principal residence doesn't generate cash flow each month, or provide your with a return on your capital (until you sell it and realize a capital gain).In some markets it actually makes ore sense to rent your residence, and take your investment capital into a market where real estate makes sense and produces cash-flow and a healthy rate of return for you.You obviously need to consider your personal situation, living expenses, investment capital, etc.

Followup, is it true that we don't want to hold a mortgage note near its maturity because the deductible portion of the payments will be too small and we are better off cash-out refinancing to an equivalent payment size as long as we can produce income on that cash-out equal to the interest rate of the note?

A lot to consider when valuing a MHP, but don't pay for potential, you pay for what it is currently producing.

This article below got me wondering if rental income producing properties are a less viable option for us.I appreciate your thoughts.http://seattlerealestateinvesting.com/why-you-shouldnt-buy-seattle-real-estate#

Investors from high-priced markets like California, New York and New Jersey (to name a few) call me often looking for better investment options.In general terms, you could easily purchase two turn key properties (for cash) in solid markets that will produce $400 to $600 per door (depending on the market).

Where are the top producers?

I'm a "top producer" in my current industry (according to IRS reportings only 2% of businesses in my sector report income at my level - I'm in a very difficult industry).

If this is an income producing property, comps don't really matter (and tax assessed value certainly doesn't either).