Ok I’m a newbie. I have been reading everything Real-Estate saving all my money and even went to a couple seminars. I love the support on here. Please help. I have been scouring REO’s and I found 2 smoking deals in one weekend. One is already rehabbed REO from the bank that looks like a model home, asking 110k comps place at 150k conservative. I would like to Lease Option this place as it would cash flow nicely. No work needed. I was thinking $5000 for the option contract and $1200 a month lease. Rental comps are about $950. Nothing going toward the purchase. I do not want them to have an equitable interest. Does this sound legit?
The second I found is what I was looking for a 3/2 with minor rehab needed maybe $15k max asking 93k comps are the same around $150k. Beautiful house with large tile throughout. I want to fix and flip this or refi and lease option to get some money out. As far as Financing I have a Lender who can do Hard money for a month then refi into convetional for $110k and my girlfriend has been approved for an FHA loan for $95k. Which loan should go with what house? How do I market a Lease Option? Craigslist? Newspaper? Oh… offers are 95k and 85k respectively.
Sorry for my own newbness, but is a $1200/month lease payment in a $950/month market, with no equitable interest and a $5000 option actually something the market will bear? What are you going to make the option’s sales price?
Maybe this is really common, but to me it sounds like a terrible deal for the buyer, especially with everyone thinking that prices will fall. Why pay $5k to lock in a price in a declining market, overpaying by several hundred a month and not even build up equity?
Anyway, what I would do is find some other lease options in your area and see what the competition is asking, and even ask them where else they’re marketing and how much success they’re having…
Otherwise, I’d suggest marketing everywhere! 
Yard sign, craigslist, newspaper, pennysaver, fliers in the local sub shop’s bulletin board, people standing next to you at the gas station…
But I would make 200% sure your numbers are what your market REALLY will bear. You can’t find that out on any free websites with any real accuracy IMO… I think that’s very important before you put your neck out.