There is a standard TN state form that they can provide you or the potential buyer with however they may not know about any code violations if they purchased the home in the current condition, you stated many owners have done their own work to the home.

Right after you close get an insurance policy that protects you if there is a loss. 

You can charge the person that is buying the option agreement th 3-5% option consideration fee, but the legal fees and other costs that are there to insure your protection, is out of your pocket, since it is your option to use those services.

Apparently, the standard agreement from the board of realtors isn't assignable.  

But in that year, how would the interest only standardly be calculated. 

Perhaps as I progress my standards will raise.

Either their standards are much lower than mine or we are driving in 2 completely different types of areas.Usually, when I am out looking, I'll find two addresses in an hour that fit the bill of a distressed home and, if I'm lucky, one of them will pass the eyeball test when I am putting them through the appraiser's website.What am I doing wrong?      

I send thousands of letters each month, and the source I use for data is a division of first American Title called Core Logic (or RealQuest).There are obviously many ways to get data, but in my years in this business I have found that Core Logic really is the industry standard for real estate mailer data for all types of real estate.The first thing I like about Core Logic is that the data is usually amazingly fresh, and they even tell you how old it is before pulling it.

Well the insurance will not cover the SFH anymore because it is not owner occupied.  

In Canada all you need is adequate insurance coverage anything more is just for show, unnecessary and costly.Even in the US for small investors it is a misconception that it actually adds any value or protection.