My understanding is that they're for owner occupied homes only, and the paperwork can be fairly extensive. 

The previous owners were quite elderly, and they had forgotten to file the senior exemption paperwork.

What I am still confused about is the paperwork needed for the seller and for the tenant-buyer in either scenario (SLO & WLO).Here's what I've read/watched/gathered as far as paperwork:1) enter into a lease option agreement with seller that is assignable2) have separate lease agreement and option agreement with tenant-buyer3) have 3 separate docs with each party: lease agreement, option agreement, and purchase & sale agreement (this was the first I've heard about having 3 agreements)Which is it??

I can tell you from anecdotal evidence from branch management, there are at least several other landlords that have a similar system set up at my banking institution.Bank-to-bank WITHDRAWALS from my accounts are not allowed unless the bank account receiving the funds is "officially" linked to mine, which is something I would have to set up with the bank by filling out paperwork at a branch.

And I share with them all of my contacts and my paperwork.

We are still getting our legal paperwork together, but all in all, this deal will make my partner around $19,000 in profit - pretty good for a completely passive investment!

We are still getting our legal paperwork together, but all in all, this deal will make my partner around $19,000 in profit - pretty good for a completely passive investment!

Are there certain forms or any paperwork required?

We did pay some closing costs to get the paperwork done and in order to get the deed into our LLC.

We did pay some closing costs to get the paperwork done & in order to get the deed into our LLC and I think we paid a referral fee to the person who brought us the lead.What made you interested in investing in this type of deal?