I very good price , a very good cash flow and a very good condition .

The option can {many would say, should} contain the future Agreement of Purchase and Sale (APS), with all the terms and conditions of the future sale, laid out, as a Schedule to the Option agreement/contract.In exchange for the right to purchase the property at the {strike} price established by the option contract, an option fee is paid by the purchaser of the option to the writer/provider of the option.I would keep the two agreements separate (as if they are with two different people) and have no performance ties between them (i.e. no rent credits, no financing of the down payment, etc).  

You could probably just modify it for your own use. http://housing.ucsc.edu/cro/pdf/condition-checklist.pdf

Don't mean to offend but is it possible you got lucky with a paying tenant for a poorly located/conditioned unit?

I would spend some time in those areas if there are specific neighborhoods you like, drive em, note the condition of the properties, create a list, then direct mail those properties.

A house for $7k is probably not in livable condition and may not even have a certificate of occupancy, so you wouldn't even be able to live there while doing the work.  

Also, since the property is vacant, we knew the Seller would want to close ASAP (so as not to incur carrying costs for too long), so we proposed a 19-day closing (13 days from waiving the financing condition), which the Seller jumped at.All this to emphasize my original comment that it really depends on what you're interested in, and what your means are.

That means you will either need to sit on the sidelines from time to time and wait until buy-and-holds make more sense, be fexible and adapt your strategies to the changing market conditions (eg: transitioning from buy-and-hold to flips, and back again), or seek investments out of state.

I'll explain that this is the most my finance guys could go on a property like this in this condition and in this neighborhood, BUT I could offer more if he'd consider helping with the financing.

It's in terrible condition to say the least.