If you're a first time flipper, I recommend getting your cash/private money/hard money financing arranged first and then find a willing agent to shepherd you through the acquisition and ARV estimation. 

The reason I do not utilize the purchase option is that I don't really want the property and most investors wont enter in to that type of arrangement. 

Any and all advice on this arrangement would be super appreciated!

@Eric Trompeter I am working on setting up a similar arrangement right now.

Although the insurance company, contractor, you, and the bank can make whatever arrangements you all agree to even before work begins. 

After the last deal & the first partnership, I realized I can put together these syndications more often if only I met more people who would qualify for this type of arrangement. 

I emailed the landlord warmly asking her if she had considered selling the house, and if so, could we work on an arrangement to purchase the home at the end of our lease.

Either they agree to a household cleaning arrangement or it's a trainwreck.  

Download your state landlord tenant laws, you could arrange a mutual lease termination buy out and charge a fee equal to several months rent to let him out, depends on state statues if there is a limitation to what that fee can be.Happens all the time so that's the nature of the business.

Of course there is always a certain degree of risk with any arrangement, whether tenant pays each month or 12 months in advance.