It is not a purchase agreement until you exercise the option so forget the escrow.

I know there are ways to go from middling income, depleted cash reserves (because of recently rehabbing a property,) and credit crunch, to getting a second property quickly.In my case, I exercised patience. 

For instance, is one way more likely to assure that the tenant/buyer will be able to use the option fee for a down payment a year down the road when they get ready to exercise their option.

Your credit will take a hit.Cost of Debt and Net  Worth exercise: Get a whiteboard and sit down with your significant other.  

I still use this exercise every day to analyze deals and I don't act until I figure the deal can't lose.  

William there are two ways you can help this seller using leases and optionsYou have to ask yourself whether not the property is going to appreciate overtimeIf you feel it's not going to appreciate, you need to get a price below the market today on your option with the seller,  if you going to do a sandwich lease option and stay in the middleIf you going to do a lease option assignment where you lease with an option from the seller and assign thevdeal to a buyer for fee, it  doesn't matter what the price is as long as the price is today's value or lessWhen I talk to sellers I don't talk about lease is an option, I first go through three columns landscape in a yellow legal pad,  and show them the basics of the choices: 1) sell with an agent and pay the customary costs include sellers concessions, agents commissions, closing costs, vacant house holding costs, etc.The first column it's important to go through an example of their house value; what ever  the fair market value is, do that exercise so that the seller truly understands he's going to net a lot less money selling agent than ur solution2) Second solution entails leasing out with the property manager, and you go through the cost to lease it out and also the cost to repair and sometimes property managers tack on other costs like padding maintenance costsThen I talk about the risks involved with leasing it to an unproven tenant, and then having to evict the tenant, lost rent for 6 to 8 weeks, clean the house, remarket and screen the new tenant, etc.Before I go through my solution, I say a "what if statement" that is something like this:Before I say the "what if statement" it's important you understand that I am using "negative phrasing" here, and ""appeal to a higher authority" which works a lot in terms deals like lease options, sub 2, and wrap purchasesHere goes.."

So the option release fee will be given to me directly by the buyer when they exercise the option or at the time of assignment?

I suspect if you're a licensed equities investor, or have options to exercise, you can play the leverage game with equities and get similar (or better) returns than in RE.

My landlord has called me and exercised her right to inspect the house we are renting from me.

No cost at all plus you are getting exercise.2) Craigslist.