I can imagine that, with the wrong mindset, it could feel like an invasion or disrespect of your personal space. 

Tell them you agree the $5k is theirs, non-refundable to you.

While rates were near all time lows, we bought a home that we could reside in and rent out the backyard detached living garage space.

I was coming from the notes space where almost all transactions begin with an Option.

Also, you may want to look into a two family home and rent out part of the space of your new home under the FHA loan structure too. 

Find a brokerage that specializes in the investment space.

I would recommend to all that they build a STRONG relationship with a Realtor/Broker or several Realtors, because  2.Downloaded a list of multi family owners from Listsource.com - You can get this from a Broker who can run a list of non-owner occupied properties, this features the number of beds and baths and from which you can build a mailer and network. 3.

For further reassurance, you could take their lease to a real estate lawyer and ask them to review it.Lastly, If you have any friends in the property management space, maybe you could buy their leases as well. 

AntiochWhy It's Hot: Historically considered a more affordable suburb, Antioch is evolving as more people move to Nashville and look for space and affordability.Key ROI Factors:High rental demand makes it ideal for flippers who want the option to hold properties.Rapid development of retail and infrastructure is boosting home values.Pro Tip: Invest in homes near the new developments around Century Farms or along Murfreesboro Pike for maximum appreciation potential.Bonus Tips for SuccessRun the Numbers: Stick to your investment formula, but be flexible.

You can finance the purchase of an investment property in an IRA, but you must use a non-recourse loan, which typically requires a 30-40% down payment.