Assuming your bathroom is an average size (5' x 8') the additional cost of replacing maybe 4 sheets of drywall versus the labor intensive method of patching, floating and sanding the existing walls, and hoping you get a uniform finish, is a no brainer.

Hey,The best method to find a property management company is to get a referral from another investor.  

@Joe Villeneuve , what a creative and interesting method to free that cash that is otherwise tied up. 

Not over your head at all...Congrats - you have some good ideas....What I would suggest is a prop that is lower than market based mostly on cosmetics...flooring, paint, minor drywall, possibly cabinets, etc...you can get substantial discounts & still get the 1st time buyers rates & programs & such - then hold for a few years & possibly rent it out....or another option would be HUD foreclosures - they have (in our area at least) a 10 day "owner occupant priority" - before the true investors can even bid on them....much less competition....you may want to look into that avenue as well - Whatever your method - congratulations...

Since you don't have a track record, I think you're going to have to treat this investor more like a partner than a pure investor.If you're looking for a methodical approach, Alan Cowgill has a course on this topic.

One problem I can think of is, if you owner finance for 3 years for 500K and the property is now worth 400K, good luck refinancing.It sounds like you need to buy at 70% below market value in order for owner financing to work.I think this is more a 'market problem' that is unavoidable regardless of your financing method.

Moreover, the rules of the game have changed but only the real players adapt.

The seller sold a house they had trouble selling and the buyer of your option and the house instantly gets $50,000 of equity from the house and of course you made your $50,000.In conclusion, as you can clearly see using the Lease Option and Option methods are creative ways that A Real Estate Investor or Entrepreneur can use to easily make money in real estate.

How can I go from not claiming allowable depreciation on a rentalproperty to claiming allowable depreciation without creating anunauthorized change to my accounting method.

What methods can anyone suggest for getting insulation in the walls without tearing them down?