However, the taxpayer must be exercising independent judgment and not simply ratifying decisions made by a manager.

You are welcome - hope those words and concepts had value to your investing exercise - Thank you so much for the vote - I always feel great when others here on Bigger Pockets garner something from my responses (been working on answers now for 48 years).Some of the ideas sound way out there  but you never until you ask - the good thing is knowing the questions to ask and how to execute them in writing on a contract offer.I remember not long ago - my son and me looked at a property - we really didn't like the equity position so we asked the seller if we made an offer would they give of us $7,000 - the seller thought about it for about a minute - and wrote a check for $7,000.We closed the deal and assigned it almost immediately for a nice assignment profit - oh - we kept the $7,000 (it paid for the trip) you just never know the degree of motivation that sellers have until you probe.I feel it is important to take your time when negotiating - don't try to solve their problem too quickly, make an appointment to meet again - and always counsel (that is ask many questions) and get the seller to invest in the negotiation - ask to see the deed - the settlement papers and maybe their title insurance policy. 

what ever you do make sure to do your due diligence and verify every dollar, stipulate the terms (years) of the Lease if your going to have any of the option money go toward the  principle amount, the amount of intrest you will pay him suggestion 5% make sure you have a couple of exit stratigies like contingent on if it passes the inspection when it's time to exercise your option .hope this helps Robin

Assist the distressed homeowner to exercise a right of reinstatement provided in the loan documents or to refinance a loan that is in foreclosure or is in danger of foreclosure; iv.

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. 

What is a signed contract worth if you are not willing to exercise your legal rights?

A genuine learning environment won't push you to call your credit card companies and ask for an increase in your limit, and pass this off as an "exercise" to teach you how to "negotiate".THAT is the type of education that is unsupported on BiggerPockets. 

Grant admittedly says that the $100k is an arbitrary number--it's more of an exercise that you can produce income first, then worry about investing that income later.

Would I need to structure it as a 2 month lease with 10 monthly renewal options to be exercised 30 days before expiration?

See what the city or county wants to go there and see it fit within your plans.We had a developer exercise before where the developer showed 4 plans. 1st one was what the city wanted lots of trees with very little buildings. 2nd one was what the  tenant wanted tons of parking and a small building they pay rent on. 3rd was the developers plan that had lots of building for rental income and a smaller parking lot and limited greenspace.The 4th plan is the one where all of those come together to make a project viable where the tenant, city or county, the public, and developer get some of what they want.Sometimes it can't come all together and projects fall apart.