Remember, all squares are rectangles, but not all rectangles are squares.Plusses include very low cost to the investor, and very fast recovery of that cost (can be hours if you're set up correctly).Negatives, include misunderstanding why you must keep the lease and the option separate, as well as making sure you don't give any "credits", in any way, to the LO tenant/buyer.What makes this work is doing a "sandwich LO", and what takes the negatives and makes them positive, is when you have the tenant as a regular tenant, and the buyer a different person (REI).There's a lot more to it, but that should give you the basic answers to your questions.

Maybe I'm misunderstanding, but if the small cottage is not part of the lease, the owners don't need to give any notice whatsoever. 

To avoid future misunderstandings, the written lease should require all further amendments to be made in writing.3) Be Clear with the RulesTenants must first grasp the rules in order to follow them.

I understand that the upfront time spent going through a lengthy conversation or meeting may seem moot to an investor who just wants to see the inventory, but I think it prevents headache and misunderstandings in the long run.

Does that answer your questions or am I misunderstanding your question?

In my earlier employment years, my managers were often perplexed when I told them, you misunderstand, I'm not asking for the time off, I'm telling you.   

Kate, you're misunderstanding something.

Sounds like you're misunderstanding how to use a current BRRR property as collateral for the next.

Many misunderstand what the MLS actually does with rentals.

This seems extremely vague and I feel like it could lead to misunderstandings due to lack of knowledge of each others expectations.