Assuming after all the fees and costs associated with the exchange, I still have to pay $25K out of pocket. 

And even though the broker is telling me that the pool is value add to have good tenants right now, I am not convinced at all, especially with all the late fees i see happening.

I did read that there is an annual door fee to pay in some areas, although not sure how to find about that fee when considering a property either. 

The play would go something like this:I "buy" a house (Lease Option) for $200,000 with $10 Option Fee and $1200 in monthly payments for a 3 year Option.I "sell" the house (Sandwich Lease Option) for $220,000 with $10,000 Option Fee and $1600 in monthly payments for a 2 year Option.

Legal fees are around 400 €, but the process takes at least 4 months if things go smoothly.

Make an offer based on that minus repair minus your fee minus your end buyer’s closing cost and about 25-30% for their profit.

Weren't these fees all disclosed to you upfront? 

@Tanya Rooney  Some Hard Money Lenders require you to put at least 25% down and the ones that do 100% will have a lot of fees involved and points.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

Thanks @Joshua Birk, I decided not to make an offer because there are a few extra fees that hurt the cash flow and I couldn't come up with a good idea on the attic!