Lastly , don't get emotional with any house, if you have to let it go then let it go.  

I've been using the 50 percent rule and then going a little deeper if the numbers looks good.

I think it would be much easier to drive up price if im dealing with an emotionally invested end user looking to raise a family. 

@Glenn TracyI think you may need to dig deeper into the possibilities of what you can do with your Self Directed IRA.

Basically you have a lease document, and an option document, and they are completely separate not referencing one another and stand alone.There are good books available on Amazon to get a deeper understanding, and you should also have a qualified attorney review the documents and make sure the process is all above board before having the tenants sign.The option contract will be the hard part if you're Seller Financing for example as you have to be concerned with Dodd Frank and acting as a lender, otherwise you just need to make sure that the home will appraise if the Buyer gets a conventional loan.  

Keep your emotions out of the case, what you can prove is all that matters, pictures, times, events, etc.

I will presume there is still an individual owner involved, at least for purposes of discussion.I suggest digging a little deeper for information.  

Emotionally, I know this is the last thing that you want to do, but a wise man once told me, "It's all about the net!"  

They will make or break you so pick wisely, pick without emotion, and pick who is best for you and your property.

I understand that commercial is based on business decisions and residential is emotions.