Some of these people who contact me are literally dumb.

I was literally handing a check to the inspector when I received the call from the loan officer with the bad news.  

Keep it simple, the option agreement provides the right to purchase the property at a pre-defined price ... really no different than when you purchase a call option to buy a stick at a set price (strike) several months down the road.  

, but i ran the numbers and after that it didn't look so appealing, and if you were to factor in capital gains and other fun government taxes, well, i don't think it's a good option, and there are for sure better ways to exit.The numbers play out like this (not considering taxes, capital gains, and other factors, i was just trying to play around with the idea and keep it simple for the start):Your NOI: ($119,160 + $30,000)  - $70,000 = $79,160 or $2638.67 per year for 30 years and $219.89 per month for 30 years when you factor in the 30% down into it ($137 per month for 30 years)Cap Rate: 2633/70,000 = 3.76% per year for 30 yearsCash flow: $331 per month for 30 years but only $137 of that would be profitROI: 2.33% without the 30% down factored into it (3.76% with the 30% down factored into the calculation)Total ROI = $79,000/$70,000 = 112.86% over the course of 30 yearsConclusion:Well, from what i see here, the problem is the interest rate used.

It's a high crime area, and there's a registered sex offender, literally, living right next door.

Kory keep it simple: (3) Secrets Everyone Needs to know about using a 203k loan for more information on the 203k loan, loan process and how to build the right team for success.Good luck to you!

The concept here is "divide and conquer"; separation makes thing transparent (aka visible) and the deposit/withdrawals/checks become a simple audit trail.

Did this include footing down to frost line or a simple slab on grade? 

Long Island- Suffolk and Nassau Countys' taxes are out of the league- holding costs can be $900 a month for a simple house.

But when it cratered oh man.. these folks had no reserves they could not afford a simple turn over they were totally under capitalized and as we know turn key operators in those days did not sell A and B class so the assets just did not perform on a razor thin budget and then the defaults happened.. and there you go the ugly cycle.