If I absolutely did not want the asset back I set them low enough that I would get a bid  ( 6 plex in Tacoma I did not want to F with) .. on other one's were I did not want to take a loss and I thought I could value add I set opening bid as high as the law allowed IE default interest all costs etc. 

Not sure on their debt service, but the 6% cap rate assumes a 4.7% 30 yr amm rate and 3% vacancy loss.

As a result, even a minor misstep by the buyer/tenant could result in a major and inequitable loss of equity.So why do lease-options fall within the definition of an executory contract?

What a terrible loss from the condo, hopefully you can make up for it in the future with a successful investing career!

I'm returning to REI part time after major losses when the bubble burst in 07-08. 

Maybe there's some funny math with carry-over losses due to depreciation exceeding returns, and later superior after-tax earnings if we assume inflation, but I just don't like the idea of my investment money suddenly only going half as far.So, how can this other financing with higher interest rates work?  

Just eat the loss and take care of your good tenants.

All you need to find is a $10K mistake in your renovation numbers and your margin is gone or you may end up selling for a loss

This could save your business from catastrophic loss should something bad happen.You can check out their website, or search YouTube for Clint Coons and watch some of his videos to see what they're all about.

FYI: I'm a conservative investor and will not risk the loss of my principal.