L/O Strategy - Long

I'm a newbie just looking at getting into REI. I wanted to run a potential L/O strategy by some of the experts in the forum. I currently live in a seller's market where appreication is >=10% and median SFR are around 225K selling for 97% asking. I've read that if I were flexible on terms I could get top dollar selling price. So I started running some numbers. Buy house listed at $225K for full listing price - $6500(approx 3%) cash at closing for "improvements". For a net price of $218500. Get traditional NOO financing 95% LTV @ 6.75% for PITI of $1813/mo. Cash out of pocket $11,250 down + $2000 closing -$6500 improvements=$6750 Market rent for this type of house is ~$1500/mo. So I'll lease option it for $1700/mo( $600 rent credit) and 6K option consideration. 1 year term for a asking price of $252K (112% of orignal listing price). The reason for the high rent credit is that I want the buyer to have 5% down saved to buy the property at the end of term. Monthly cash flow is $-113 per month. If the T/B doesn't exercise profit is 6K option consd. - $113 per/mo. At 12 months this comes to $3738. If the T/B exercises the option on 12th month=$10,788(252-225-rent credits-opt consid) + $11,250(5% equity)=$22,038. Now I realize this is skewed towards the T/B buying the property, but I think I've increased chances of T/B exercising by allowing the T/B to have 5.54% down payments saved when the lease is over. This should make it easier for the T/B to qualify. If the T/B doesn't qualify I've made a very modest profit + I have 5% equity in a home that has probably appreciated around 5-10%. Is this a good strategy? Please poke holes in this and/or make suggestions. Thanks. -Mike :-S