Thanks Terryw, that really cleared up the questions I had on the topic. Much appreciated.

So if I say purchase a property for $200,000. What formula or rule of thumb do I use to determine the call option price?

From personal experience, the downsides;

Very few banks like to secure serviced appartments for financing your next investment property purchase.

a) They ( Banks, you) sometimes have to give 3 months (sometimes more) notice of intention to sell to the the serviced appartment group (in a loan default situation). So the asset is not as liquid as…[Read more]