So if your location is better than the 3-2s they are building farther out and there are not a bunch of 2-2 apartments renting for less...with a pool and exercise room to boot, then you are probably ok.  

Collect an option fee and cash flow until he exercises the option. 

The Facebook exercise will resolve the question "what do I want and need to communicate and generate leads".

First step you should ask the owner if they are willing to finance the property, otherwise it is all an exercise in futility.

I want to get into a lease, use the rental income to help pay for the property, when I exercise my purchase option.

I think that was a poor web/data scraping exercise by someone who does not know how to BCC or use a mass email marketing program.  

Seller remains on the deed -it's still his property until the option is exercised.

If tenant violates this Paragraph 9 or any agreement to keep a pet on the Property, Landlord may take all or any of the following action: 1 dog to be part of the lease (my highlight)  (1). declare Tenant to be in default of this lease and exercise Landlord's remedies under Paragraph 27;  (2).

I would also avoid the practice of rent credits - crediting back part of the rent towards a downpayment when they exercise the option - or collecting above market rent and setting a portion aside towards the downpayment {the CRA will see this practice as an instalment sale}.You will also want to be certain your tenant / purchaser will be able to exercise the option and either buy out the property in cash, or be able to secure a mortgage at the time of exercise.  

Here is an excerpt from @Clint Coons regarding the due-on-sale clausehttp://www.alglaw.com/service/view/land_trustsWith respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may NOT exercise its option pursuant to a due-on-sale clause upon:(1) the creation of a lien or other encumbrance subordinate to the lender's security instrument which does not relate to a transfer of rights of occupancy in the property;(2) the creation of a purchase money security interest for household appliances;(3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;(4) the granting of a leasehold interest of three years or less not containing an option to purchase;(5) a transfer to a relative resulting from the death of a borrower;(6) a transfer where the spouse or children of the borrower become an owner of the property;(7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;(8) a transfer into an inter-vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or(9) any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board.So, like K.