The numbers give you a range of values for discussion/negotiation purposes, but in reality a deal like this isn't a market rate deal because there isn't a broad "market" for a property like this.

However, before consulting with these professionals, we are taking the initiative to educate ourselves so that we can ask higher quality questions and ensure we are making the best choices for our future.

Off market deal brought to me by my realtor.

For landlords, lease options can attract tenants who are committed to the property and may take better care of it.Commercial Property Considerations: When considering a lease option for a commercial property in Texas, ensure that:The terms of both the lease and the option agreement are clearly defined and legally binding.Both parties understand their rights and obligations, including maintenance responsibilities, payment terms, and conditions for exercising the option.Consult with a real estate attorney to draft or review the lease option agreement to protect your interests.Here are some things that may help you form a pros and cons list going forward:Advantages:Potential for higher rental income due to the option premium paid by the tenant.Attracts long-term tenants who may eventually purchase the property.Allows flexibility for both parties in uncertain market conditions.Considerations:Ensure the option fee and terms are fair and reflect the property's market value.Understand the financial implications and tax considerations associated with lease options.Be clear about the tenant's ability to exercise the option, including financing requirements if they decide to purchase.Lease options can be a viable strategy for commercial properties in Texas, offering flexibility and potential benefits for both landlords and tenants.

Or get a tenant in there at market rates? 

Interested in flipping a home that would qualify based on HERS rating + energy savings and would like to partner with a lender to market the property as eligible for EEM.

That will help break down that market and give direct insight on deals there.

Hi Ian,I might do that deal if I also felt that the rental amount was projected to go up (like in a high growth market) or if appreciation looked to be promising and I wanted to exit the investment in a short period of time but in general, by doing the deal with only a 6% profit, the margins are slim to make it worth it in the short term at least.~ Lindsey

Check in with @Joseph Chiofalo they work multi family nationwide and would be an excellent initial feasibility resource.

I’m trying to stick to a market with properties less than 200k.