If it is necessary to separate a lease from an option for both liability and foreclosure rules then why not use the following design

Home @ $100,000

Lease home for $500 per month

Sell Option for $5,000
Year one...

If it is the entire house you may want to factor in a larger than normal budget for flooring.

Also make sure to set the timeframe, so Cyberhomes can perform a cost factor of money adjustment over time.

It has hundreds of questions designed to extract the seller's motivation over the phone.

I'm also dealing with less of an investor pool so I have to factor that in too.My area is still fairly stable so I would guess that in most other markets you will need to be drastically lower than my numbers to be moving property quickly.

Hi Mike,Unfortunately, I don't think this deal is looking good for you depending on a few factors.

You can't use the cap rate as the sole evaluation factor to make your buying decision if you are using financing.

If we designated 90% to my husband and 10% to myself then the SE tax hit will be less because my husband has a "W-2" job so he already maxes out.

Both houses have approx 50% ROI when rented out and paying cash (modest estimated, I've even factored in 5% vacancy and 5% rent collection loss) I check out a lot of foreclosures (I've seen about 50 this month from various sources), and I put out a lot of cash offers.

Of course your expenses have a huge factor on this as well.