I got the first email from Zillow requesting to view the inside unit.

All in one where you can comment, view and take pictures and it's updated full time?

I thank you for your story and point of view however.Your comment on marketing made me smile.

Don't view it as an "investment dream" as you called it.

Trying to be open minded, I can certainly see the realtor's point of view (I am not defending it either way).  

Again, make a nice presentation, focusing on WIIFM (what's in it for me, of course from your private lender's point of view).

I did share with them at signing that i would like to bring inspectors and investing partners through to view. 

Has anyone ever used a police or any type of security to view a vacant home In a rough neighborhood?

Don't take an 'unreasonable' amount, to avoid 'equitable interest' issues down the road.You can offer seller concessions to cover their closing costs in lieu of offering 'rent credits' which can be viewed as a 'financing agreement', and subject to lots of fun rules.Keep the lease completely independent of the option; don't tie performance of the lease to the performance of the option. 

Specifically: Property condition - properties in poor physical condition, that have code violations, or structural/pest issues are viewed poorly by lenders.