@Manny G.you are negotiating with the seller wrong, and don't feel bad, most people do on terms dealsMost people show the benefits of the lease optionI don't do thatI draw three columns on a piece of legal paper The first column says "selling traditionally with the real estate agent"The second column says "hiring a property manager"The third column says "selling creatively on terms in the state of Louisiana"First column I go over the "costs to sell" with an agent, 6% commission, 2% closing costs, 2% negotiation wiggle room to compete with all the other homes, and sellers concessions that can be 3 to 6%.And I do the math, sellers netting anywhere from 85 to 90% of appraisal.Then I go through hiring a property manager, paying 8 to 10% of collected rent, and dealing with the risks of a bad tenantLastly I go over either lease to own or subject to or wraparound mortgageBut I don't teach the seller how these workYou'll be there all day teaching the seller the inns and outs of contractsThere's five steps in the negotiation of a terms dealOne build rapport with the sellerTwo negotiate an upfront agreement, which means you let them know that at the end of the conversation they can say no if they're not happy with it or yes they are and you can say the same thing, so were either going to get something on paper today or were going to say no it's not a good idea.

I do think now that i have some under my belt, my best bet would be to just hire contractors myself in the future, but right now I am taking a hiatus.

I bet if that is what he was looking for. 

Two tips:  Plan for Property management when you buy the property (because you will move), and don't bet on appreciation and selling in 3 years (that's gambling).Good luck!

I still wouldn't bet my life that that's the best way, but I'd bet money on it.

Jay,Didn't anyone tell you - Never buy a rooming house on Elm Street ;-)I do like the airline personnel model, but find student rooming house and those close to research/teaching hospitals are good bets as well.  

I'd say about $1,300/month including expenses and financing is a safe bet. 

This is not a seamless plug - I would be willing to bet anyone on this site would agree that this is good advice. : )I would highly recommend, as you start on this REI path, that you meet with a financial or mortgage pro (I would actually recommend you meet with a number of them).  

One thing I would say is that given your capital resources, your best bet is probably going to be a Joint Venture type situation with an individual seller.

If you figure out that a Hard money capital source is your best bet...give me a c all