By putting a premium on the amount of DD money in the offers, the owner is obviously trying to bind the buyer and prevent from exercising optionality and tying up his property during diligence period.Your advice about getting a GC in there makes complete sense, especially given a building is completely down and that the complex that has been neglected. 

You want to do an option because options are taxed once they are exercised (or on the backend).

@Nerissa Marbury Unless the damage was extreme this sounds like an exercise in futility.

For me it's more about getting exercise while gaining more experience with different types of repairs which will be helpful in the event that I run out of money to pay help or if I feel a need to speed things along.  

His part of the deal is to follow the lease provisions, pay the rent, and exercise reasonable care toward the property.This other stuff is, frankly, none of your business.

If you can do any of the above you can increase NOI and force appreciate the property so that when you exercise option,  their will be enough equity so that you can refi with a commercial lender, pay back owner, and have little to no $ out of pocket for dp.

I find that after a bank gets bigger their capital controls and restrictions make it less likely for them to be flexible on make sense underwriting since they are under massive scrutiny from regulators depending on how many assets they have and other financial ratios.I do want to make a note though that I've talked to general counsel at my bank and cannot speak for other banks out there but if title is funded in your name and you transfer it back into your LLC with out any change to owner percentages (100% you personally to 100% LLC) and if the note is paid on time that we "most likey," will not exercise due on sale (DOS).

Your involvement would be: complete a 15-minute exercise before we arrive and then we will interview you for an hour.

So you, as the owner/ seller is obligated to sell to the tenant/buyer if he exercises his Option to buy.

He pays me a non-refundable option fee ($2000) which is credited at closing should he exercise his right to contract at Y date.