If I do not exercise the option to buy the property after 5 years the landlord will keep the option fee and all rent that has been paid.

You exercise your rights as a junior lienholder to pay off the senior.

The exercise of tracking it regularly helps to keep it top of mind and it also allows me to see how my plans are working compared to my goals and if I need to make adjustments (I agree with @Chris Clothier that you've got a keep a long-term perspective because real estate investing, like life in general, is a marathon not a sprint).Great question, Allan!

Yes you should easily shed a good portion of it but to shed all of it will be a lot harder and needs diet and exercise (not just one)This is evident also by the latest treasury bond sales - other countries are slowing down buying our debt which means rates (especially mortgage rates (will stay higher longer).

-Most leasees never exercise so 3 to 5 years from now... you keep the option fee, and had the benefit of rent that was probably above the market rate for your area.The drawback is that you don't get the ~$250k(after selling expenses) to play with. 

If you sell an Option, you would not have debt payments, but they may want to exercise the Option right away, so you meed to think about the language you put in it.Example. 

our single best exercise move was to move to AZ in the winter. 

Gross negligence means:An act taken without exercising even the most basic amount of care owed to others.A deliberate disregard for the safety or well-being of another person.A lack of care that demonstrates reckless disregard for the safety or lives of others.A conscious and voluntary disregard of the need to use reasonable care, likely to cause foreseeable grave injury or harm.In other words, if there are potential hazards that exist at your property that you are ignoring, you could be considered grossly negligent.

And now since receiving the official mailed notice, he is exercising his right to dispute the $500 claim for the AC sanitizing.

You will want to make sure that you have the right to exercise those contingencies in the event that you need to back out to get your escrow deposit back. 3.