As a lien holder you can exercise your rights on the property. 

We actually exercised the option just under a year into the option period. 

He sends this teaser with the nice pictures and the price to investors from Italy and requests their feedback (and indication if they would be interested in buying).If he senses that there is serious interest (and with some experience you can tell whether or not there is serious interest), he exercises the option, makes the repairs and then he sells.

(a) A landlord may not retaliate against a tenant by taking an action described by Subsection (b) because the tenant: (1) in good faith exercises or attempts to exercise against a landlord a right or remedy granted to the tenant by lease, municipal ordinance, or federal or state statute" Last I checked, freedom of speech and protest was both state and federal statute that could be used against a landlord.

Too late now, but the key is for the landlord to exercise their right for entry and use a "Notice to Enter" if necessary, in accordance with landlord-tenant law, PRIOR to posting the "Notice to Pay Rent or Quit".  

She wants to maintain her independence.My concern is that if she were my mom (and we just moved my mom from a house to a subsidized apartment last year) I would want her in some sort of assisted living or at least where a trained medical person could easily check on her.Am I being too much of a worry-wart, does anyone else have a similar experience that can offer some advice? 

With Lease Option it will allow you physical control of the property (lease) and later down the line gives you the right to either exercise the option to buy the property or to just walk away. 

I currently work at a children's hospital as a neurosurgery medical secretary. 

If you buy for $155K plus spend $40K in rehab, using the formula I gave Jeff this property should be worth around $279,000.Do the following exercise: Add up all the cash you will spend out of pocket on this deal.

@Jon Holdman  My girl account payable/receivable and customer service in medical supply.