Thanks for posing the question, it's a question that brings forth an actual exercise. 

You stay on deed until they exercise their option.

They make great tenants as they gently use the property since they're basically living at the hospital.  

"Purchase price if exercised by xx/xx/xxxx is $____.  

I have been to Fort Polk for some training exercises.

My husband and I are in our 20's, are new to investing and have been exercising our minds and ultimately learning more and more everyday. 

65-70% of after repaired value, minus repairs is a good exercise to start with.

If the buyer chooses to "exercise" their option and buy the property, the option money is typically applied to the purchase price.  

He makes it sound so easy and can be misleading to people who aren't experience in the RE world and some serious financial damage can be done if one's not careful and exercise industry good practices in RE transactions. 

I run my students through this exercise and it is called the Investor Avatar or said another way, what does your Ideal investor look like?