You've got a good strategy there...timing is one of the most difficult things to master in these situations.The option allows you to do the following...contract your end buyer subject to you exercising your option...not subject to the short sale being completed.

I also offer a positive reference to the next land lord just as if they had fulfilled their entire lease with me, because they did...they just exercised the option to buy out their contract. 

If not, then don't bother with this exercise.

Unless Buyer exercises the right to terminate granted herein, Buyer accepts the physical condition of the Property and any violation of governmental, building, environmental, and safety codes, restrictions, or requirements, but subject to Seller’s continuing AS IS Maintenance Requirement, and Buyer shall be responsible for any and all repairs and improvements required by Buyer’s lender. 

The price of the contract is $25,000, used towards the purchase price if they decide to exercise.

It will help if you exercise a thorough background check and qualify your tenants well. 

While recording laws generally protect a bona fide purchaser (BFP) without knowledge of an unrecorded matter, sometimes a court will find the BFP had a duty of inquiry which if not exercised eliminates the protection. 

After doing this exercise you may find out that there is no way to make money in this deal. 

All in all, it's a great opportunity to create some money for some continuous hard work, it can be done easily, & it will be a win-win for you and your daughter, but caution should be exercised while we are moving closer and closer into a recession. 

Going to a lender and understanding what your borrowing ability is still a valid exercise.