Then the money is secure but not spent in advance in case of emergency and the tenant must vacate - extended out of the area medical treatment, care of inlaws or locates employment. 

I also believe that the turn-key solution they provided looking back was extremely inflated for the area I ended up in.  

For those of you interested in the details of the deal:1945 4/2, 2000 sq ftListed at $87K, offered $82,500ARV $110,000We felt as if there was no room to remediate the existing repairs on top of a total cosmetic rehab which is what this property needed.Cosmetic Rehab - $10-$20KReplace existing wood and vinyl siding - $$$Asbestos remediation -$$$$Termite treatment - $$$Rodent infestation - $$Gas Leaks - $New stove - $New fireplace - $$$All this for a rental?????????

Has anyone used Green Home Solutions?

Sherry and Jeff GuybersonRealty Solutions TN

Unfortunately, there's a lot of misinformation floating around about lease options, and even land contracts, which sounds like a good alternative solution, but it may depend on the state.

This opened up a can of worms and confusion with multiple answers and solutions.

I chose LLP (Limited Liability Partnership) over holding in my own name to get the lower tax treatment but still have Liability protection.  

Simply forbidding it is not a solution IMO.

@Chris Purcell, I see this as a good solution to a problem.