Assuming you target a specific market (one, two, three zip codes or neighborhoods, for example), and define some buying criteria (property type, condition, square footage, etc), there will not be enough people for you to market to to generate a crazy call volume.

But anyways over this past summer I got in touch with my real estate agent and she told me that in perfect condition my house will be worth 200-210k and I owe 120k, well in my own opinion I believe that's a high estimate.

Mark We purchase HUD homes in Florida on behalf of investors in Florida.They are always looking for lending options...If you lend in Florida, please forward terms & conditions and we will forward to our network of buyers.Thanks,John RogersFlorida Trust Realty

The building is concrete block and previous owners built on the side of it another "Wooden frame" store front which is "attached".Each unit is being rented out under market value, and decent condition.The property does not have a CO (calling town this week) but is in working condition and fully rented out. which is strange?

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.