Please help on how to construct a right lease for new tenant in below special situation:I have a potential buyer of the condo, pending on his daughter admission into a local university.

What they care about is selling their property and not getting taken advantage of.By your own admission, you offered him 65% of the current market value - and you think it needs $60K in renovation without even setting foot inside.If someone made that offer on my home, I'd tell him to walk west till his hat floats.

My comment was based on your own admission.

I do have the GPA to make admissions, but my TA wouldn't cover the entirety of the program. 

So that said personally I'd likely stand firm on the fact that the property was rented as is and while 28"X28" may not be todays 'code' it by your own admission is sufficient for him to egress if needed.

I would stress that 3x income is the price of admission.

That alone was worth the price of admission!

Shawn is by his admission a newbie note investor.  

If you have time I may be able to introduce you and get you free admission.

It's analogous to community college vs. an ivy league school: the cost of admission might only be 20-30k but I can still learn a lot, and this will primarily be an educational experience for me.