I recommend you put in 5% and the seller take a carry back note and you secure long term fixed rate financing (traditional).

I would consider a little higher security deposit.

First of all, non refundable pet fees make the tenants less caring about YOURproperty: refundable security deposit make them take care of the property to get it backThen, pet rent or any other rent is YOUR income - why would they pocket the money?

Generally, the trustee has the authority to assume (continue) or reject (cancel) the agreement, making you an unsecured or secured creditor for any option money already paid.

We are a ways off from Social Security age.We have not decided where we may move, but have been thinking about the Lake Isabella area.

smells shady to me, however the the fact that he wants to put as the leasse wouldn't concern me so much since would put his name and the LLC on the lease and you would take his personal social security # to run a background check either way, but the fact that he told you that he is planing to sublease it that a red flag to me.

Get a lawyer to draft a 2nd position lien secured by this property. 

Lenders who have posted here care to comment.See belowLimits on the Number of Financed PropertiesIf the mortgage loan being delivered to Fannie Mae is secured by the borrower’s principal residence, there are no limitations on the number of other properties that the borrower will have financed.

And you'll need a deed of trust to secure the note to the property. 

And balked when I included normal verbage in the PA that the security deposit $XXX and pro-rated rent would be turned over to me at closing.