Just a bilateral agreement that specifies:The giver of the option, or optionorThe receiver of the option, or optioneeThe purchase priceThe term (start date and end date) that the agreement will be in effectThe consideration (typically a dollar amount) paid by the optionee to secure the right to buyPLUS whatever else your attorney thinks is necessary.Make the document recordable by your county clerk, get it signed (and possibly notarized), and then have it recorded on public record.The intent is to ensure that if he tries to sell to anyone else, a title search will find this agreement and trigger a title defect.

Hence the reason you typically need to buy with cash or a hard money loan to acquire these properties.

We typically are targeting growing markets in those regions. 

Add a percentage to that like 10-15% for unknowns or things that don't typically get accounted for.

This interior change forced us to consider the short term rental market and how it could actually be a desirable feature for this market where a group may be interested in renting both sides like adjoining hotel rooms.Our total cash into the renovations was extensive ($95,000). 

If I move it, can I refi it later after the typical 6-12 months (depending on the lender) or will it be treated like new construction, which I believe would need to sit a lot longer before a refi?

When an investor is looking at being cash flow positive, they are typically putting down 20-25%.

You'll want these features, if you decide to sell the property.

Typically, not doable.

I am wanting to know if I could make the sides out of wood and cover them with hardie backed board (concrete board typically used to attach tile on) to protect wood frame from getting to hot and catching fire.