Aside from having the option properly prepared, you'll only need an attorney or title company if and when the tenant exercises the option. 

If you exercise the option he is required to buy, but you are not required to exercise your option.

If you have a mortgage on it, you can still do the quit claim but just know that you are opening your self up for your lender to exercise due on sale clause even though it is technically not a sale.

2) What methods do you use to determine a comfortable number pay the lessor per month while leaving enough  wiggle room to pay mortgage, cover for vacancies, repairs, taxes while having a good cash flow left over with the intent of saving this to use for the 20% down payment when the option is exercised.3) Would you pay for an inspection up front before the contract is signed, or wait until it's time to exercise the option?

The lease had explicit language stating how to exercise the option, and it seems that they have forgotten to do so and missed the deadline.

this is clearly the fun/storage wars/small-time heist option.i also emailed first alert, the manufacturer, and they told me that if i send them a notarized statement of ownership ($15 for notary) that they'll email me the combination. this way i'll end up with a $120 not-so-safe of my own. i could sell it and make a few bucks or keep it long enough to forget it in a property at which point one of you fine people will buy the place and exercise option 1: attack it with a crowbar. plan is to open it up on sunday. i'll post what i find.

At list at closing. do you have a visual diagram of this exercise ?

When the tenant buyer exercises the Option to buy a few years later, generally that has bought down our underlying financing and we split those profits 50/50 as well.

Probably not but then again, you aren't looking to help anyone out but yourself, and if the owner is too tired or naïve or distraught to exercise any further effort on saving their home or selling it for money in their pocket, better you get it than someone else right?

Perhaps you don't exercise the option until after they pass away, at which time there may be a step up in basis.