My wife and I are here in Nashville bringing her 10+ years in the local market now being the principle broker/agent for our own real estate company as well as myself coming from 15+ years of construction management.Looking to make local connections for strategies and exposure to a variety of real estate ventures from flips of any scope and size to long term holds of SFHs to multi-family/commercial properties.Thanks and we look forward to using BP and our local community to the fullest! 

Lease options can be structured in a variety of ways, the simplest and cleanest way is to charge an option fee and then rent, with a portion of the rent usually a fixed amount (ie $50 dollars a month or something) being credited toward an eventual down payment when they exercise the option to buy.  

Sellers ask for either proof of funds or proof that the buyer can obtain financing because(1) earnest money is often - maybe most often - refundable for a variety of reasons (contingencies)(2) the seller doesn’t want to engage in legal action to obtain the earnest money should the buyer default (title in many states will only “release” earnest money when the opposing party agrees - if not it becomes a court issue)(3) the seller doesn’t want to tie up the property if the buyer can’t perform EVEN IF he would get the earnest money as consideration(4) the seller NEEDS the property to sell much more than he needs the earnest money - he may have a purchase contingent on the sale of the subject property, or numerous other reasons. (5) seller may be able to obtain a higher price by asking for less earnest money and better pre qualifying buyer than relying on the amount of earnest money to “qualify” the buyer. 

They offer a variety of underwriting sheets.

But you'll find a variety of all strategies here on the website.

I just wanted to turn to BP for a variety of feedback.

Tenant has been in for about 5 weeks now and there have already been a variety of issues including what looks like nicotine or another old stain seeping through the paint (see pics).

@Jeremy Chaser - I'm sure you will get a wide variety of opinions on this, but personally I do not consider appreciation as a wealth building strategy.  

The internet makes it pretty easy to find a variety of resources these days.

General BP advice:  When you post these questions , you get a variety of responses , some just come here to bash you ,some to defend their profession ,  some want to help you , but they are too biased to provide a quality answer and finally some who genuinely have the intention to help you and provide practical suggestions ( they might be right or wrong but they have the best intention )Some don't realise the impact that they will have on a newbie - when they call you tire kicker , time waster , unreasonable ...