The costs are far better where I would be investing than where I live and number still seem to make sense, even with factoring in 12% PM fees for them to advertise, rent, execute the lease, manage, pay bills and vacancy factoring.

She may have some liability that makes her vulnerable to reporting to her broker and to the state real estate commission. 

Then there’s all the transactional stuff...inspections, appraisal, working with the lender, coordinating with the title company, making sure the contract is executed correctly.. the list of ways a realtor provides value is long.

We did that in Denver in the late 90s with several executive homes. 

Since they know that you can successfully execute a deal. 

If they paid by check you should have all the information you need, file for writ of execution and the sheriff will take whatever is in their bank account.

Ask yourself how you can get the deal done, plan and execute. 

-If I don't execute my option, home will go back to current owner who can then sell at market value, and I had some nice cash flow for a few years.Questions-Should I offer a purchase deposit upfront, or roll it into the monthly rent?

If you currently own properties, and they aren't reporting on your tax returns, then we just use the executed lease to show the rental income. 

Welcome @Aaron Clarke :)First off, great job at just really being vulnerable and asking for advice.