A) It's not exactly what he said orB) It's BSThe big guys 25+ years are still all quite fat and happy with a ton of debt and units.I'm not doubting Dave at all, since about 80% of people mis-handle debt and a cash-only budget is what they need.However, if you understand the power of using OPM money (ie you borrow o$1 at x% and get a return on it >>x%) it is a major tool in growth.Now if you're 60 and unwinding, I understand. 

Before I started this thread, I really didn't feel right about putting her in a bind and I feel better about not trying to force her into another year.

And when a tenant gets in a bind for whatever reason, and starts paying rent late, with stories about someone being unable to work, etc., if you let them get behind, you'll end up having to kick them out - even if it's amiable - and you'll end up using their deposit for rent and have none left for damages.Honestly, their financial problems are deeper than anything that is your problem, and they are about to make it yours.  

If your "good" tenant gets in a bind you will be the first creditor they will choose to screw with out any care or concern. 

I don't think they are particularly unreasonable for a careful landlord, but I think the quality of tenants in the area might not be so great to begin with and including these details upfront makes me come across as a tough landlord:  Application: Background check ($25) Past landlord, employer, and personal referencesLease Points: Initial lease term is 8 monthsMonthly rent of $865 due on the 1st of each monthRefundable Security Deposit of $865Pet Fee (if applicable) of $200 upfront and additional $25 per monthOptional FrontPoint security system for $100 upfront and additional $50 per monthTenant pays for water, gas, and electricityRefrigerator and range oven includedWasher, dryer, dishwasher, and microwave not includedNo smokingAbsolutely no illicit drugs or other illegal activityTenant responsible for damages beyond ordinary wear and tearTenant required to purchase renter’s insurance before move-inNo assigning or subletting without landlord’s permission* The above list is intended only for purposes of convenience and is in no way incorporated into or comprehensive of the Lease Agreement, nor is it binding.

If not, it's not a binding agreement.  

I need something for them to sign that is legally binding and covers my butt!

It would be cheaper for you to pay for a fat life insurance policy for them.I don't know your rental market, but if the normal market there is such that you can't get a unit rented for 6 months to a year, it's time to sell it and at a loss if necessary.

This is legally binding in CA at least.  

Even if you have closed a few deals, you may not really understand what goes into an addendum or legally binding in a contract.