Yea of old “inside the box” thinking. See, it happens even in a “creative” investing website.

pauly, what makes or breaks a deal is only what YOU intend to do with it. For example:
An $80K mortgage should run you around $700/month PITI on this thing. So, that being your fixed monthly costs:
Who cares what the rental rate is UNLESS you’re planning on renting the place. Are you? NO. You said that you’ll be doing a lease with option. Owner financing terms, right?
Lease option for 2 years, option price $100K (apreciation, remember), monthly payment of $850/month PITI to lessee (based off of $97K @10% for 30 years, arounded down), $200/month rent credit.
Let’s see, that’s $150/month x 24 = $3,600 + $3,000 down + $92K - $80K = $12K backend all equals up to $18,600 in total profit (rounded down, I might add).
RETAIL OPTION: Advertise “Rent to Own” “Lease with Option” “Owner Terms” etc, etc.
Phone rings off hook. Take applications on interested parties. Take those applications to your friendly neighborhood mortgage broker that works with the “credit challenged” and have him pull credit. Find interested party that CAN actually get a loan on property (Amazingly, in most cases, scores as low as 550 qualify for 100% financing). See to interested party for top dollar (they are just happy to get a house, and you’re a savior to them).
So, assuming three months to sell ($2100 but hey, let’s round up to $3K) and sell is a lowly $90K (get the $95K), that is $90K - $77K = $13K = $3K = $10K profit. Not bad for 3 months!
Just another way of looking at things.
Raj