The lease must be in force for the option to be exercised.

I would speak to his employer and get a character/reference check from them and get physical proof of his retirement income but overall I would probably let someone like you're describing move in.

Local real estate agents are a good source of information for property value, it may be a good exercise to call 3 to 5 local real estate agents and ask them for a simple CMA. 

With a lease option you don’t own it until you exercise the option...so you can’t borrow against it. 

In my opinion, the physical renovations are just one element of a larger problem.  

know if Im not physically there full-time?  

I will not walk away from any flaw in the property itself where costs are definable.1) Is it possible to get solid bids that stay in line with the budget (and appropriate margin for error/unknowns vs ARV2) Physical inspection must reveal the full scope of the issues not don't enter the dreaded "we won't know till we tear into it."

Of course you can say “I can pay this much for the property or I’m not going to exercise my option to buy” and let them decide.  

It is all perspective.If somebody or ANYBODY (with few exceptions like those with mental/physical disabilities, etc.) is broke in America it is because they don't truly appreciate what we have here. 

Does anyone have any tips for evaluating neighborhoods that you can't physically get to.