It makes you eat the bank's insurance, so to speak, because if you accept the cheaper price, and the buyer defaults, the bank knows it can get its ratio back out of the property. 

I'm not sure how comfortable someone would feel giving a distressed homeowner a card stating that they will be earning $500 from it.Best,-JD

I have found a homeowner who is underwater, the house is worth 100k and he owes 120k.  

That falls right into line with some of the articles on here which suggested around $180/m per house.This house is in good condition and I still result with a fairly high budget.After all of my expenses (mortgage, taxes, insurance, maintenance, vacancy, pm, lease fee) I am left with a Net Cash Flow of $180/m.

With your lease, make sure you have an early termination clause, pest control, pet fees,  and the # and limitations, also I would recommend requiring renters insurance.     

So I signed Lease Option with this homeowner, but she still owes two payments for the burglar alarm company.

Tenants were becoming home owners in droves.

Some brokerage wants you pay $2500 insurance in lump sum not to mention most have desk fee, technology fee, background checks.Suggest wait til you move to NC.

You should take into account the expenses that go along with it, taxes, insurance, are you going to keep the utilities on you will need heat if you don't want pipes to freeze or you will need to winterize the property, if you are financing you will have those costs.

I'm hoping folks here can answer a few questions.I am currently in negotiation with a home owner for a SFH in Sacramento, CA.