this is tricky, it tends to be a case by broker-case basis, and only a handful of brokers control the bank-owned..yikes......i forgot if the agent can rep. the bank and you, there in NC, if you make offer..Just thinking out-loud and opinion, not telling you what to do, dont know your plan (hold, flip, or your funding):  ...get over there, with a property preservation buddy, assess the repair and upgrades, (unless its already pretty perfect or you feel the agent can give you some accurate idea)...ask agent what he/she can sell for in good condition, confirm.. then factor arv, repairs needed, make offer with 10 day due diiigence professional inspection......are you offering an almost full retail-market priced forclosure anyway, then are you going to hold it for cash flow? 

You might be able to keep some of the security deposit, but this depends on your lease agreement and other important factors and deadlines. 

Just ran a quick search and Fayetteville, NC seems to rank at or near the top when it comes to the rental vacancy rates in NC. http://www.civicdashboards.com/city/fayetteville-n...Could anyone comment on that or is that something you simply factor into your numbers before going into a deal?

Appreciation is nice but the main obstacle seems to be rent control.

Should I improve the property and use as a proof of concept to see if my market can handle a higher rent factor?

Mainly homes in good school district.  

@Marielle Walter as stated above, Boston and the closely surrounding areas are VERY competitive right now - $5-600k will be tough (factor in your renovations after purchasing too). 

Suggest you go the electric route--less or  no maintenance costs, and when repair is needed, inexpensive compared to most gas fired boilers or furnaces.I would also have a small natural gas wall space heater installed somewhere on the main living floor (not in bedrooms) just in case of power outage and / or for supplemental heating.  

.- He then sells me a portion of the LLC for $500K.I see some pros and cons to both scenarios, but I mainly want to make sure that I follow the established process.  

Wholesaling Lease Options will be our main niche in our REI business.