Mark, the option fee/option money/option consideration, is a nonrefundable amount of money paid upfront from the tenant/buyer to the seller. 

When converting a rental property into your personal residence, there are important tax considerations to keep in mind, particularly when it comes time to sell the property.

I will take what you said into consideration and complete the screening with them.I hope they are a great fit but if not then will continue the search for a new tenant.Have a great rest of your night!

Market Considerations: What factors should I be most mindful of when investing in a new market?

I would add to that a consideration of risk.

Maybe a house hack/live in flip.I'm not aware of your markets normal appreciation though, so do take that into consideration.

As far as should you, blended rate is your answer right now you are paying 2.99% on $390K and 12% (a guess) on $285K. so:((285,000*.12)+(390000*.0299))\(285000+390000) = 6.8%So ignoring a few other considerations (payoff timeframe, closing costs etc) if you can get a refi for less than 6.8% then it may be worth it...

The new owner bought the house after I purchased my land, and he might not be aware of these encroachments.Is there any risk for me, such as the possibility of acquisitive prescription of a part of my real estate after years, especially if (theoretically) the neighbor incurs considerable expenses for e.g. asphalting his driveway? 

After careful consideration from our financial department, we have decided to return your holding deposit and not proceed with the lease.

However, if you prefer to make a single payment due to cash flow considerations, that can also work well, especially if you can make it substantial.