As for 20K and 50K magic money showing up, make sure you have all the paperwork showing the legality of it and you "should" be fine.

Have your story and paperwork ready to go; if the seller counts tell them it's the highest you can go without talking to your partner or have a number ready to go.  

That translates to more paperwork and additional smaller moving parts within the transaction that come together to form the financing process (processing, underwriting, escrow etc). 

If so, see an attorney about the property paperwork.  

I thought any landlord would understand but maybe I'm the only one who appreciates saving time with automatic payments, avoiding costly fees, and eliminating extra paper work.  

While this is not a fatal mistake, it's more paperwork and headache if its uncovered later on when you try to sell.  

@Dan Costantino , I believe that it is a state law that you can not notarize your own paperwork of any kind.

My realtor was going to do all the paperwork and the negotiations.The seller has indicated they want to use their own realtor and title company ( I am not sure why?).

But it doesn't seem like it's worth it with all the complexities with dealing with the paperwork and potential of default on LO or CFD, and losing the flexibility of a month-to-month standard lease agreement.Thoughts?

If do a lease option with the owner I have not negotiated THE SALE (in capitals above for this reason), therefore I don't believe that the seller would be on the hook for the commission provided that we don't sign the option paperwork until after the 10 days.