What made you interested in investing in this type of deal?

just figured i would throw this out. 

Why this approach works:Less Competition – Most investors ignore lease options because they don’t understand them.

This results in smaller annual deductions.- No bonus depreciation: Unlike U.S. rentals, foreign properties do not qualify for bonus depreciation.

The lender is pushing you to do this to get an FHA loan.

What made you interested in investing in this type of deal?

DTI < 33%I've been constantly getting advised by my real estate agent (& i've discussed this with multiple agents) that if I add any contingencies to the offer, it won't stand a chance in the bay area market.If that is the case, how do I protect myself from challenges which could be found during home inspection / pest inspection related contingencies?

I've had my GC run through the property and he did not discover any leaks, so I'm purely confused why I'm seeing this massive increase. 

If for some reason they can't get this sorted out by the next payment date, you should figure out how to physically escrow that payment somewhere...this at least protects your payment until you're confident who it is supposed to go to in the future. 

I bet this person paid less than a grand for the rights. and will want 10k from you...