I know I will have to pay incomes taxes as apart of this conversion, but I've been doing some reading and can't seem to understand if I will also be hit with additional taxes as a result of something called "pro-rata rule".

I just had a property turn over and followed this procedure for the showings:I advertise the property and handle all calls, emails, texts on it and set up viewing appointments (I group them all within 30-45 minutes on one day)The current tenants show the property to prospective rentersWhen someone applies, they email or fax in the application and pay the application fee via PayPal (although I am now trying out Cozy for applications) and I process the applicationIf the application passes, I prepare and email over the lease for signatureWhen the lease is signed and sent back to me, I send over a payment request for the first month's rent (via Dwolla or Cozy)At the check-in, I drive to the property to check them in myself and collect the security deposit in secured funds (or use Cozy to collect it beforehand)I have been doing the above for a long time and it has worked pretty well.

Given that I would call or meet an agent at my local real estate meeting and say "Hello Mr.

@Ernie Hillman try calling we buy houses signs in your area. 

Talk to property managers, call for rent signs and talk to the landlordsHope this helps!

I kind of assume it will need more work, otherwise they would show something from the inside.What do would you say to the idea of me calling the LA and going over for a look.  

For an example of what I'm talking about, this guy has some great videos showing him making actual phone calls to real motivated sellers: The tutorials, books and podcast are amazing, and if you guys have already done these kind of videos/blogs let me know... but I think videos/blogs chronicling every detail of real deals as they're in progress from start to finish that you guys are working on would be extremely educational.It would be so awesome to watch a series of videos/podcasts or a series of articles/blogs where Josh or Brandon are detailing every step of the process in a deal that they're currently working on.

Several times already, my realtor has called the seller or seller's realtor with our offer price instead of submitting an official offer.

We signed the amended offer and that was itToday I get an email from my realtor stating that the seller's agent called her yesterday afternoon and said there was another offer coming in and that they were going to wait for that.  

But finding GOOD lease option buyers to assign to is a much more difficult task, because the reality is that 70% of people who call me on my ads are not a good fit, and likely wouldn't be able to actually exercise their "first right of purchase" on the home after I assign to them before the expiration date.