I was pretty shocked as obviously race or skin color had nothing to do with it.

@Joe Melvin This is how I would handle it.A preliminary screening process is what you need to quickly determine an immediate offer or MAO, based on what you currently know.

The aim of this report is to describe the procedural steps and preliminary results of VAAFT.

As I expecting getting your feet in the water gives you the biggest shock.  

I know, I know, you're shocked, right?

Thanks for all the replies, the first two just shocked me because I didn't know people could realistically do this.Well then now I just have to learn I suppose.  

@Laurie JohnsonYou need to be extremely careful with lease option seller financing to not violate Federal law, namely Dodd frank and the Safe Act.Your buyer need to be "qualified" and the buyer needs to be processed by a licensed mortgage broker.The penalties are onerous, look it up you will be shocked!

This should be met with nothing but shock and outrage.

I'm just trying to find a formula that will allow a quick, preliminary analysis of a teardown candidate. 

Just open up escrow on it and order a preliminary title report.. or title work or whatever they call it in your state..once you get the title report back it will have the true vested owner.. and if there is issue with the title IE to convey marketable title it will spell it out in the Preliminary title report.some call it a title binder  etc etc.. usually a few hundred bucks.