I'd take a look at what type of demand the market has for 1-beds but based on your 14 out of 20 rented report it doesn't look promising (unless it's mismanaged or in transition). 

It's easy to draw up a fake acceptance letter, just like scammers can fake many other things. 

It's better to under promise and over deliver.Do you have a track record for flipping houses?

No money was exchanged, but he promised that 15th is when he was available and would start the work.Luckily, there was a delay with the loan and loan docs, so i have not closed on the house.

Or you could take on a partner who has the cash and promise him a percentage of the rents and/or profits via a joint venture agreement.

What appealed to me about the wrap mortgage was getting my down payment back and the promise of a steady payment over time through the interest without having to worry about tenants, but I suppose at any time they could refinance the loan anyway and I would have to pay it off anyway.

Background and credit is the best way to judge if they will pay you and keep their promises. 

After reading up on the new laws Lease options assignments didn't look to promising.

I am located in Columbia, so have only visited the branches there.Before finding Susquehanna, I had talked to a few local banks and they all didn't sound promising even though their website said "investor friendly".

I don't think we are too far off on price but I was thinking that I could sweeten the deal for her by promising her the listing once the rehab is complete.