For example, if in the 30th month I decide to exercise my option to purchase the property, the purchase price would be $180,000 less 50% of the previous 29 monthly payments at $1500 (29 payments x $1500 x .50 = $21,750). $180,000 - $21,750 = the new purchase price of $158,250.

You guys agree to a pre determined purchase price and you get something like a six month option to exercise it at that price or conditional upon his moving out.

That allows you to get out of the deal by exercising your financing contingency.If you're just trying to assign your deal with out doing any fix-up, than the idea is to sell it before you have to close and come up with funds.

If you want to cover all the bases, offer to teach them how to lose 80 pounds while eating all they want and not exercising.

The book teaches to find motivated sellers and put the property under contract using creative purchasing strategies such as "subject to owner financing" basically taking over the sellers payments..... they also go into saying that the lender wont exercise the due on sale clause in the mortgage and says that there are several ways around this.

If your tenant exercises his option, you exercise yours and pocket the difference.

If they DO let me exercise the 5 year option, how does that work?

This is setting yourself up for failure right from the opening.Once you have a tool like this, figuring out your biggest expenses, or what class of item you spend the most money on, it'll be easier for you to understand where you can go leaner.You don't want to spend time accounting for every single dollar, that's not an effective exercise.  

Since I've been in the Conforming loan world my whole life, financing 15 units is a new brain exercise for me.  

Writing a business plan even if it's just in outline format is a valuable exercise for the business owner to get clarity and analyze numbers for profitability and cash flow.