Quote from @Devin Conley: Completely agreed @Alan Asriants - good breakdownAverage holding period is less than 10 years so your math is the practical end state for most buyersOnly ~5% of payments go towards principal in that time... so any meaningful equity comes entirely from price appreciationAt that point, you're just renting a leveraged bet from the bank, including all the exposure to downside risk if prices dropQuickly turns into (even more of) a speculation game Right - you are honestly operating more like a business with higher default rates than a "smart" investment

reliable affordable contractors - period

Option - In legal language, a real estate option is an agreement that grants the party owning the option, the optionee, the exclusive, unrestricted, and irrevocable right to purchase property from the party selling the option, the optionor, during the specified period of time that the option is in effect.I'm wondering if it is possible to control a house using an option to purchase in order to renovate the property (fix and flip) without actually buying the assett with a HML. 

FICO scores and other risk scores can be misleading if there's not enough tradelines over at least a 48 month period.

Here’s the play:Price: set a walk‑away number, then use an escalation with a cap tied to comps and in‑place rents; pair it with an appraisal‑gap limited to what you can comfortably cover.Terms: bigger EMD, short inspection period not waived, but prebook inspector and key specialists; ask for seller disclosures up front and use inspection to negotiate only for health/safety or structural.Lender: include DU/LP or pre‑underwrite letter, fund your reserves, and show shorter close with an ordered appraisal slot.Search: add adjacent submarkets with similar tenant bases where days‑on‑market are a touch longer; have your agent call the listing agent before writing to learn hot buttons and tailor.

We no longer renew tenants that are late more than one time in a twelve month period.

Scale only works if each asset meets the same bar.Model approachI built my own underwriting model, but many solid templates exist online now.Key focus areas• Purchase basis (true landed cost) vs comp set• Rehab scope and sensitivity• Rent comps and lease-up timing• OpEx realism (maintenance, turns, taxes, insurance, management)• Debt structure and stress tests• DSCR and breakeven occupancy• IRR, equity multiple, unlevered and levered yield• Market concentration vs diversification• Hold period assumptions• Refinancing and interest-rate exposure• Lease absorption• Downside stress tests (rent drops, tax increases, insurance shocks, rates, vacancy)How I use it• Every deal goes through base, downside, and worst-case underwriting.• Comps and cost assumptions get cross-checked across multiple sources.• I separate the “investor story” from “spreadsheet reality.”

Typically these short furnished leases have shorter termination periods and easier termination like a month to month so if you have a good month to month you are good.

***My Out of Pocket $36,909.07Option Fee To Me $20,000.00My Adjusted Out of Pocket $16,909.07******My Cash Flow * $ 982.00 monthly**So, I sold it for $20,000 more than street value, I get tax write offs, I got $20,000 back immediately as an Option fee, I cash flow at $982.00 a month and if they exercise their Option, I’ll get $146,854.63 (minus the $20,000 Option fee) equals $126,854.63 cash along with any pay down during their Option period.

For a first flip, target light-to-mid rehabs in C to B areas with multiple comps and days-on-market under your hold period; build a tight scope and hire a GC you’ve vetted with references, pay by milestones, and keep a contingency.