Agree with Marc & Chris on the aggregate though, you should underwrite some live deals and approach the exercise like you will own them within 2 months, whether you have intention of buying or not.

With every real estate market cycle we always need to exercise extra levels of caution and assets need to be underwritten with scrutiny and don't just believe the "broker" and "news" hype. 

Determine amount from monthly rent to be applied toward the purchase price of the house ($100 to $150.00 each month) should he exercise his option to buy.4.

I think this exercise will be a good learning tool for many of us.

I fear finding a contractor may be an exercise in frustration. 

It outlaws: Refusal to sell or rent a dwelling to any person because of race, color, religion, sex, familial status, or national origin.Discrimination based on race, color, religion, sex, familial status, or national origin in the terms, conditions or privileges of sale or rental of a dwelling.Advertising the sale or rental of a dwelling indicating preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin.Coercing, threatening, intimidating, or interfering with a person's enjoyment or exercise of housing rights based on discriminatory reasons or retaliating against a person or organization that aids or encourages the exercise or enjoyment of fair housing rights.

It is kind of like the lease-option money, less than 1/3 actually exercise the option.  

Between exercise, day-job and family commitments, I normally can't get to my home office until 8pm.

This is non-refundable and does not go towards the exercise price.    

I'm a nurse who would much rather implement a prescription for exercise then a ten min and push a pill doctor visit with no follow up from doctor.