I currently have a home under option contract for 2 months. I have it under option for 212K and marketing it for sale at 220K. I know it's not a big deal, but I'm just looking to get my first deal done.

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He is interested in the same types of deals that I am -- Buy and hold (rent) real estate, with possible lease options on the back end.I told him that there is a range of options, from him buying the property outright (with a wholesale fee to me), all the way to me buying the property (with a mortgage held by him).

With a conservative 50% for expenses, it looks like this:Rent: $450Expenses:$225NOI: $225Payment: $183cash flow: $42Total cash invested: $5700 (include orig fee and closing costs)Cash-on-cash return: 8.9%That's too low, IMHO, for high risk, high hassle investments like real estate.OTHO, you're using a down payment and a 15 year note.

We understand that our source of income would be the lease option fee we charge + income from additional rent (as apposed to what we pay on our option).

I dont like paying the appraiser fees when I'm wholesaling a property.

if i am going to put an offer on a property with the offer price of 475k what would be the max dollar amount you lease optioners would put down as an option fee

After foreclosure and legal fees I was into it for $10K.

Is it fee simple or on leased land?

Since you are paying a monthly service fee, they are somewhat forced to add features and continually improve their service in order to retain their clientele. 2.

One of the new provisions states that they may "require manditory inspections, and providing city with back permits, rental history, Certs of Occupancy, and payment of past due capitol expansion and utility fees, SALES AND USE TAXES."