Your option or lease can't have rights to act as an owner, getting building permits, hiring contractors for repairs, insurance loss issues, evictions are more complicated, it really requires an owner who will assist if needed.

So we can phone the city every week and still get suck with it, or keep it in our name.We treat it as a pass through, no profit made, and accept a small loss.

There are some simple things you could do to minimize the loss of good potential applicants, but you've done most of the 'heavy lifting' by defining your screening process and asking the right questions prior to your applicant submitting the showing scheduling form.

That way you could have multiple exit strategies - flip or hold as a long-term rental.If this is buying retail and you have to exit via the investor market - you could be looking at a 20%+ loss to get out - even if repairs/updates add directly to the value.

I totally agree with @Thomas Guertin If you let him feel like he can push you around this time, he will just keep doing it. better to cut your losses and start over with your new and improved lease than to have a miserable situation in your home.Good luck and keep us posted.

In a 3 month period of time [1] I came out of the closet with being Autistics [2] we bought and moved into a travel trailer because we had spent all of our money, and I was naive enough to tell everyone that we were now poor but so blessed and did not care because we now lived near our wonderful friends in the mountains [3] I was diagnosed with breast cancer and had a double mastectomy [4]  swiftly bloated up 30 pounds, developed lizard skin, hair loss and was no longer cute and young looking for my age [5] meds made me cry over anything and seemed to suck out all my brain cells [chemo brain is real]But this was all okay, because I had the support of all of my wonderful friends, right?  

It was declared a total loss and we got a check and used to money to rebuild the house.

This will mean your overall numbers will be:     a - Income from Cash Flow = $6,000     b - Income from Option Consideration = $3,000     c - TOTAL income = $9,000     d - Cost to buy = $10,000     e - CAPEX = $10,000     f - TOTAL Cost = $20,000     g - NET Profit/Loss = (-$11,000)3 - After 5 years, your tenant/buyer doesn't qualify, and you are $11,000 in the whole on a house that you don't want to hold long term.So, now that I've ruined your night (or not), here is what I would do if this was my house.  

., what you paid for the property when you first purchased it), plus amounts paid for capital improvements, less any depreciation and casualty losses claimed for tax purposes. 

I've been taking that to the bank for 19 years now.My potential loss is very small, my unknowns are large, and the potential ROI is huge.Isn't that a recipe for  'go ahead and try" ?