HUD & MLSGood Exercise

It never hurts to get out for some exercise & see what you can find along the way!

I've never heard the term "hand money" being used in an actual written contract, however, but as long as the contract explicitly states the role the "hand money" plays in your arrangement (for example: whether or not the $10k count towards your equity when you exercise your option to purchase the property) then everything should be fine. 

@Ray Jones It's a no go but a good exercise to run the numbers.

Despite having been told that all the vacancies are in "rent ready" condition, upon inspection I found that the amount of capital that will be required to actually get them rent ready will average around $1500/unit (x46 vacant units = ~$69k in required capital expense for initial lease-up).Because the low rate of seasoned occupancy will limit our financing options (particularly with banks and traditional lenders) we're considering the lease-option path; gain control of the property, lease it up, add value, get a loan, and exercise our option. 

You might consider only renting your unit on a month to month basis so you could terminate the lease quickly if someone might try to exercise their right to free speech in spite of your wishes.

Try not to tie-in substantial lessee improvements with the option exercise. 5.

6) Finally, we intend to structure our lease as an initial 12-month agreement with one optional 12-month extension with an additional $2,500 option fee tied to the extension (if exercised). 

You hone in on your presentation and you get great knowledge. and some exercise!

This applies in full to the purchase price if/when the option to purchase is exercised.