This thread seems to have turned into a CA vs out of state argument which isnt my intention.

A landlord or any other borrower is not where you should be getting a lending education, they know what they did but they don't know what all a lender does.Another issue with learning from potential borrowers, is that the borrower explains the deal to convince a private lender, they really won't get into explaining their risk exposure, that would be like talking the lender out of making the loan......ever hear a borrower tell an individual how long they may have to wait if the died, took bankruptcy or they can't finish the project because their tools got ripped off......or whatever the reason.Investors that teach folks how to lend money to them are probably most most dangerous out there, their intentions can be very good, their knowledge is not from a lender's side and they won't be hammering all the nails in.Learn from lenders, Jon has loaned money, HMLs and brokers that do a wide variety of lending are probably the best as their experience will be broader.

I like the idea of giving them options on a letter of intent because it puts all possible scenarios on the table.  

IE I should be upfront with my intentions of being a wholesaler/rehabber and not looking to settle down as a homeowner? 

I have no intention of rushing this.

You don’t want these inspections done with the intention of saving you money on ignored deferred maintenance turning into little nickel and dime maintenance issues that seriously impact your bottom line. 

Yes, the tenants are probably intentionally sabotaging the sale.

Take care not to be so specific in areas that you become restricted in operations, but address areas in general to show the intent to accomplish other aspects rather than looking like you just operate on a lark, spur of the moment and on tangents.

Be sure you have it all written out in contract form before you get started so that there is no confusion as to everyone's intent.

Intent carries more weight than what may be written.Dealing unfairly catches up with you faster than dealing fairly.Winning a negotiation will never happen unless the other guy thinks he beat you.The story; A lady owned a few parcels with multiple homes on it.