You need to take a proper application and do a background check.

So what is the proper way to transistion from one tenant to another in a years lease?

Asking for an option price above fair marker price, and structuring the option so that a portion of the rent goes towards the purchase price, is really not functionally similar at all.

Then make sure it is properly served (i.e. personal service, substituted service on another person, or "nailing and mailing").Then wait the 3 days to see if the tenant pays. 

Can I do 3-day eviction notice because they didn't maintain the house properly?

@Mindy Jensen I wish I would have listened to your advice about doing the rehab with roommates, especially with setting proper expectations.

If you can demonstrate the mold was not present prior to occupancy and that it is likely caused by their lack of proper ventilation, they should be charged for it.I missed something earlier that is extremely important.

Properly.

I will greatly appreciate if someone can shed some light on this.I submitted an offer to the Fannie Mae Home path over asking price with all the proper paperwork.

I have tax I.d. already just have to go register this business properly.