It converts essentially to down payment money when the option is exercised and property purchased.I record the consideration for tax purposes in the year of exercise or expiration. 

I've been working as a Security Systems Specialist for a national defense contractor as a Foreman where I have had to exercise my skills in construction and management. 

also what's a good way to structure the deal fairly, i think my mom would be ok signing to help me get approved, but she doesn't like dealing with tons of biz stuff, kinda gives her ptsd, i'd like to be fair, just not sure what that is, for i guess a silent credit partner, no cash, no decisions/input/expertise/etc, the property is $250k in a college town, currently 3 bed 1 bath, 1k sqft, that's almost rent ready, some paint/patching, there's a large detached garage that i was going to stay in while turning it into a second rentable uniti was thinking some kind of buy out option, that basically the house is hers and i'm managing the property, but i have an option to buy for a percentage of the purchase price, and i would pay rent until i can exercise the option,egshe gets like %10 purchase price $25k for signing, i pay the mortgage from day one, once enough in equity is built up (25% for investment prop loan(so i can count the tenant contract income against d2i)+10% for her+whatever else is needed) then I refinance/transfer/buy the house, paying her the $25kor maybe in addition to a flat number i could include payments like $100-$300 a month on top of the mortgage directly to her until i buy the house personallynot sure how crazy this sounds, any advice would be great

And, yes, I did exercise that extension!

The property class may have something to do with it but if it walks like and a duck and smells like a duck...........Doesn't mean it won't be a great deal, I would just exercise caution.  

If the seller defaults on the loan, exercise your option and buy him or her out.

In addition, 90% of these tenant/buyers never exercise their option to purchase.

Snow removal is good exercise.

He was and still is absolutely crushing it, but the price point of these cabins being $500k and up intimidated me so I wrote it off especially since I was still trying to rent 5 bedrooms in my first house hack 2,000 miles away on a high stress military field exercise.

I have been through the exercise you are going through tons of times with clients.