Now some of that CAPEX was elective to improve the property and increase rents, but still I can assure everyone that CAPEX is very real and is probably is over 10% of rents over time.

Shame.I would send them written notice along these lines:Dear XXXX,I offered to purchase the property at 123 Street because you assured me you were capable of managing it.

My clients  have an avg  PP of 60k, with net cap rates from 11- 15% , includes all rehab, passing inspections, local and state , warranty , rent assurance, meaning rent begins not later then 90s days after the close no matter what.

. ;-) I'm not here to get into an insult match, you would be out gunned I can assure you ;-).

The agent said I can’t get builders insurance bc I have to assure them work starts 30 days from closing.

A proof of funds is as well given as assurance of buying the property after the lease period is up and if the option did not get exercised (to buy), is this something mandatory and how should be the strategy be like for a starter like me?

If you trust them and feel like you can control his/her actions and keep them on your schedule over the phone might be a decent way and maybe you can go there once a week to assure yourself that everything is going OK. 

I think a written lease would convey, and I'd be bound by any terms in it, so I asked my agent to get, in writing, assurance that no written lease exists.

I can assure you it's not the bank even though the bank technically owns the property.It sucks for the tenant but he's responsible.

If you intend on managing the property yourself, be assured that you'll work for the cash flow you get because of that. ie.