We are first going to identify the define the different roles involved in real estate deals: what is their purpose, what talents do they need to have and how do they make money from the deal. 

Perhaps you should work in neighborhoods where conforming means exercise creativity.

As a lien holder you can exercise your rights on the property. 

We actually exercised the option just under a year into the option period. 

They will play the role until you have a property under contract, and then they will start getting shaky.

(a) A landlord may not retaliate against a tenant by taking an action described by Subsection (b) because the tenant: (1) in good faith exercises or attempts to exercise against a landlord a right or remedy granted to the tenant by lease, municipal ordinance, or federal or state statute" Last I checked, freedom of speech and protest was both state and federal statute that could be used against a landlord.

Be careful not to over step your role here dealing with related BK issues.  

Make sure to have a reserve acct set up with your sister for the unforeseen, and have it owned, most likely in an LLC, so it clearly spells out your roles, and ownership %.  

Too late now, but the key is for the landlord to exercise their right for entry and use a "Notice to Enter" if necessary, in accordance with landlord-tenant law, PRIOR to posting the "Notice to Pay Rent or Quit".  

With Lease Option it will allow you physical control of the property (lease) and later down the line gives you the right to either exercise the option to buy the property or to just walk away.