If the home-owner doesn't pay up, the lien holder gets a deed from the county as long as taxes are kept current.

Rent is rent.The option contract provides the holder of the contract the right to purchase the property at either a predefined strike price, or at a strike price determined using a methodology explicitly spelled out in the option agreement, for a defined time (or within a defined window) after the contract is signed, but before it expires. 

Welcome to BP,Buy and holder myself.

The tenant just needs enough info to uniquely identify the account holder (such as full name including middle initial, or name and address)  Unfortunately they no longer permit cash deposits by non-account holders for regular checking accounts.

Then the seller essentially is both the Seller and the bank (2nd position) lien holder at closing and then all the money is held with the QI.  

There might be a possibility to assume the loan but that requires the senior lien holder's approval and a loan that is allowed to be assumed.  

It honestly depends on the type of investor.I find that working Fix-and-flippers, Buy-and-Holders, Commercial, and Land development clients is a real joy, imo. 

Yes they can, but it is not the only reason they could offer a higher premium on the renewal.If your area has had a lot storm related claims, like wide spread hail storms, chances are all policy holders in your area will see an increase in premiums. 

IMO: they're still in place and the 2nd td holder can exercise the due on sale.

Who will insure will depend on location and age of the building.Premium policy holders get placed into groups but they only accept nicer areas and newer properties.