@Tyler Lee If you don't have the capital to put the required down payment and cover rehab costs, you are going to want to find an equity partner who can.

Right now I am paying $1300 or so a month in CC's, so moving would free me from that burden and allow me to put the money towards a mortgage payment.  

I had the money for down payment and hopeful to help others in this area of the City.

I did find the 5 day turn to be an annoyance, but was not willing to pay for express payments (3 day turn) as they still weren't up to the level that erent provided.Being on Rentec now I REALLY like the system, especially for what value they provide for what Im paying.

I just migrated to Rentec Direct as I pretty much had enough of “free”.... 5 business days for payment, no real management features (such as COMPLETE capture of info from prospects to tenants to auto lease generation (using DocuSign’s engine).

You need to do the analysis cash flow using tool, photos. down payment, interest rate, neighborhood type, condition like every deal posted. 

My goal is to buy the property via lease option purchase and then resell it with a lease option purchase and cashflow while waiting for the new buyer to qualify for a loan.My concern is that the monthly payment could eventually exceed my cashflow.My original thought was that I set a fixed monthly rent amount in my lease purchase agreement with the seller, and anything above that is his responsibility.But my concern with that is what if he doesn't continue to pay the mortgage?

Scott shall not be considered active under the following circumstances: unemployed while seeking gainful employment, on disability from full time employment, retired from government employment, or other circumstances out of control and atypical to choosing to pursue his housing business endeavors as his sole source of primary income. 1.Should Scott choose to “actively” engage in housing as his source of employment as defined above, Scott agrees to give 25% (twenty five percent) of his net profits accrued from his active efforts during the period of marriage to wife in the case of a divorce.2.Payment of such percentage of funds shall be payable over 120 equal monthly payments, or equivalent to no greater than 10% of Scott’s New York State Adjusted Gross Income, verified annually with payments adjusted the 1st of November each year, whichever is less, to ensure no undue hardship to Scott or the business will be endured.

While you are waiting you still have to make mortgage payments with no rent coming in. 

They are paid by the sole owner through their quarterly estimated payments and annual tax returns.From the IRS website:An individual owner of a single-member LLC that operates a trade or business is subject to the tax on net earnings from self employment in the same manner as a sole proprietorship.