One thing I'd suggest is to have pre-determined rental criteria (it sounds like you do) and apply them equally to all applicants (it sounds like you don't).

The fixed payments have a predetermined pay down amount, which then lowers the balance and the interest paid on the next payment. 

I'd rather buy that house for "cash" and pay up the nose for financing with a pre-determined "exit" strategy ( or huge cash flow rental). 

This is assuming you don't have a predetermined time horizon to sell the house.  

If you click on the footnotes, you can learn the actual code, if you ever need it or want to read it.In case someone here is curious, the following is cut and pasted from the CA Dept of Consumer Affairs website:http://www.dca.ca.gov/publications/landlordbook/li...Late fees and dishonored check fees A rental agreement cannot include a pre-determined late fee. the exception to this rule is when it would be difficult to figure out the actual cost to the landlord caused by the late rent payment.

I set up as much automation as I can to minimize time: automatic bill pay for re-occurring bills, grass cutter on schedule, tenants deposit rent into bank account, late reminders to tenants via text around the 5th of the month, eviction of non-payers on the 10th (or pre-determined date), and my jurisdiction allows via FAX.

If you require income verifications its a good idea to list the acceptable docs on your application for predetermined consistency purposes.

Its my understanding that a lease option is like a stock option where you give your tennant the option to buy at a predetermined price for a predetermined amount of time.

Your credit history must meet our predetermined screening criteria.

I actually work and live in a pretty rural/college area.However if I tell you, in order to qualify for my $6.00 Steak dinner you have to do the following-Be at a predetermined restaurant at 5:00PM on Tuesday-Prepay $6.00-Showup in a red shirt-Be over 60 inches tall-have a 620 Fico scoreThen when you show up on Tuesday tell you "Sorry but someone was more qualified and I am going to keep your $6.00, have a great day".