Because I am borrowing from family that adds an extra level of complication and I need to respect that, and defer a little bit more to their expectations/requests than if I was financing on my own money (which is my goal, maybe after this project, obviously in a cheaper area). 

This can get very complicated very quickly, especially with multiple members in multiple states.

@Omid RabbaniBusiness valuations are much too complicated to answer in a straight $xx.  

If an optionee is required to do anything to maintain the right to purchase, such as pay rents on time, you don't have an option, you have an installment sale or a sale contract.The heading of a contract at the top margin does not define what type of contract you have, you don't just declare you have an option, the intent of the contract and the terms will define what you have.The intent of a sale is spelled out in the Tax Code with the IRS, it is based on international accounting requirements, look up asset recognition of real estate options.The IRS is not some lonesome dove, all agencies under the Executive and Judicial Branches work in concert, in other words, if the IRS determines requirements all agencies and courts will utilize the same requirements to make their determinations.These "intent" rules go into effect this year, 2016.

Why start your investing life with a complicated deal.

As long as it is in livable condition you have a place to live and can charge other students dis count rent to pay down the mortgage (it's obviously more complicated than that but it's a solid starting point).Good luck and congratulations for starting so young...!!!

@Ali Boone,I appreciate the blog link and thank you for the valuable information you shared.Numbers can get real complicated real quick and things become overwhelming.As a beginning new investor, I'll be using this simplistic approach as I go forward.

I had one attorney tell me it starts at $3500 and goes up from there, depending on how complicated it gets. 

The only complication that I foresee is that I'd be buying from the estate made up of my wife's aunts and uncles who are older; not one individual.  

However, the new wood floors and other more complicated tasks that require some experience and lots of tools, I'd hire out.