. ;^)A good HOA should have done this properly for fear of legal action.

This just makes sense if your intention all along is to help your tenant to buy.As I understand it the Dodd-Frank Act doesn't apply to lease options when they are properly set up.

Good luck, and i'm super duper analytical and trying to be paralyzed but also make the proper decision and pull the trigger, luckily I moved from my first home and turned that into a rental. 

Just make sure you ask for option period and put all the proper language in the offer.

I'm sure there are numbers that I currently do not have that I need to properly analyze this. 

In my opinion, the management fee should be enough to keep the lights on but the sponsor should be properly motivated to maximize annualized ROI by taking part in the profit split.For big Wall St funds, we've seen that some don't care as much about the upside as they do about their management fees, which are hefty given the huge amount of assets they have under management.

About a year ago, I found BP and started researching how to properly fix and flip houses.

This will be my first owner financed sale in California.The main goals: Control and protection, Ensuring that in the event of foreclosure the process is quick and non-judicial.Anyone who has carried back a note in this state who can share their insights would be much appreciated. 

As @minna reid stated, 203k is your best bet and having your homework done upfront will ensure you close on time....that being, selecting a good GC and having your bid thoroughly built out.

They still require you, the investor, to conduct proper due diligence and to keep your head on in case any challenges arise.