", to see how bad it can get if you continue with this deal.My only advice is to use one of the "out" clauses in your P&S contract to NOT cose on this unit.

Unless you have extensive knowledge and connections with rehabbing, financing, market analysis, and just general real estate investing, I think you are setting yourself up for failure trying to break in to the downtown renovation game right now.For a beginning investor, I would rather you start out with something safe that has a strong possibility of bringing you a quick return rather than play the dice and hope it hits in time, and that advice has nothing to do with being my competition.

Thanks again for the response Minna.One option I'm actually considering is that if I were to purchase a property (assuming, as you said, its a great deal), rather than sell it after a year, I would continue to hold it.

They decided the market was TOO HOT when those kind of people were "playing" in it and sold out.2.

Of course, that's why the vast majority of newbies fail and I guess there is little you or I can do to change that (even though we continue to try).Mike

Just like being in a band, don't try to play all instruments.

I hope they stay at least 4 more, as long as they continue to be good tenants.My Home Warranty costs about $350 a year, which is a lot, but I CAN'T do the repair work. so if something happens, the tenant calls the MC who calls the HWCo, who calls a repair person.

In every lease option I've heard explained, including HuntMan1, the option price is always above market because the seller had no equity to play with and you want to make money when the leaser exercises their option.What I mean by "they are going to be renting at an amount that covers 95% of the mortgage" is that because you're assuming the mortgage "Subject to" and the seller has no, or very little, equity (the example HuntMan1 gave was 5%), you have to set the rent as at least the mortgage payment that you're now making, which is 95% LTV on the house.

Obviously, it is continuing to cost you money and it is counterproductive to hold it.

He is comfortable right where he is right now - we have a house, we have good paychecks, he works at oil wells (Schlumberger) and he loves being outdoors (play in the mud type thing), he loves his co-workers, he has his wine hobby (he makes wine and recently started making beer), we are all healthy and, except for a not so good credit, we have no problems.