This is my first time with hold-over tenants.

I hope that doesn’t trigger withholding on that outside income to Florida..Let me know your thoughts on this if you have experience with these types of transactions.I appreciate your time on reading my post...Lloyd

I have also seen agents withhold offers in order to buy the property for themselves, also illegal and unethical. 

 $1,600 is nowhere close to being enough.For your Expenses I would raise the amount you withhold for Vacancy to at least 8.34% (one month rent).  

I would be much more conservative than that.I never withhold less than 8.34% (one month rent) for Vacancy.  

I have a tenant (2 adults, 2 children, 1 dog and 1 car). So they have been living in this 3 bedroom 1 bath home for exactly one year. 2 weeks ago the tenant texted me saying they want to renew the lease for another ye...

He gave me no notice of withholding April rent.He requested that I pay for a hotel, have all of his things tested or replaced, and reimburse him for all his medical tests.I offered him an alternative home I have available immediately for him.

Escrow would withhold 15% of the amount realized and pay it to the IRS if this applies to you. 

Besides the DD does nothing to cover the potential damage a tennant could do if they felt I was withholding their money.Maybe I just see the good in all people :roll: :roll:

Furthermore, the tenant can argue that you were acting illegally as their employer by not having worker's comp or properly withholding taxes.The fact is that the majority of lease-option buyers never buy the property.