I have family who invest in rental properties and now it's my turn to join in.

Hey @Daniel Merced, you just became a bigger person in real estate investing by signing up on Bigger Pockets!

I'm buying this property sub2 then turn around and do a lease option.

Just got 2 signed CONTRACTS in 1 day!!!! 

If their bank has that home collateralized too it might be tough for you to refi them unless that bank will subordinate to you...The collateral agreement you are referencing is just the note they signed with the bank that will dictate the terms.

I own a few low end rentals, but we turn down opportunities weekly to manage these homes for out of state investors.  

In other words the $3k/month would not matter if you turn out to be making a 3% cap rate in a 9% cap market.Next, how is spending $135k going to improve your gross income from $5k to $9k and how long will that take?

It's essentially a 3-5 yr hold and turn, reinvest in another value add opportunity.

Once I won it I had 48 hours to get back to seller with signed contract and this was not nearly enough to get a contractor in even if I paid him $350.

this is something I have done with post-tax monies but am no turning my attention to retirement.so my questions are as follows:1.