To quote Stephen Covey:  Begin with the end in mind.I want to highlight three core components of goal setting:Start with your long-term goals.  

“Option contracts have two components: (1) an underlying contract that is not binding until accepted; and (2) a covenant to hold open to the optionee the opportunity to accept.”

A balloon is only used for cases of owner financing, and since a "first right of purchase/refusal" or "option" do not contain a financing component, balloons are not used.Secondly, a lease purchase is not a guaranteed sale.

This might enable me to pay more or sell for less.5) I can go look at any listed home I'm interested in, no waiting to align schedules w/ anyone else.Cons1) Being a REALTOR is expensive!  

When drafting a purchase contract with the seller what are the key components of the contract and what contingencies should NEVER be left out?

Property ImprovementsThe last time any of the following was repaired or replaced: RoofWater HeaterAll AppliancesDriveway/Parking LotHVACFlooringPlumbingWindowsPaintCabinets/CountersStructure (foundation, framing)Components (garage door, etc.)Also, should I ask for this stuff before I even see the property so I can evaluate it with real numbers?

My husband purchased his dads' brake and alignment business building in Lakewood, Co 8 years ago. 

Furnace components are available without needing to replace the entire unit.

Typically components will be settled with like kind and quality and the lesser of the cost to repair, replace, or in the event of a total loss The coverage amount you have on the dwelling.Now, you can still do replacement cost and save a little money by having the value at 80% of the replacement cost - Replacement cost = $100,00080% of RC = $80,000Doing this will still afford you the benefits of replacement cost.What I've found in my insurance career is that independent agents are the most knowledgable and have the most options for you to properly assess and cover you.

Please allow me to analyze the multiple components of your situation.Long Term Tenant: At 4 years, this is a long term tenant, and this may incline you to say "I don't want to ruin the potential for future long term residency with this tenant.