I told them I hadn’t asked for any, I simply wanted out I have never found a guru who honored refunds.

So, let's not put him down simply for asking for help here.

.  --- and... these issues become issues for the other Tenant and then turns you into the constant 'utility police' because you constantly have to monitor # of occupants... eww. 50/50 is simple and simply understood and 100% while vacant is also simply understood.

If the house value goes down, the tenant has the option to simply not purchase and you would keep their option money.

I’m simply going to have to restate what I already said and stick with that. 3K is small as far as a hold back.

Then, upon resale, does this private lender simply inform the title company of the payoff?

So, you can't simply trust them to handle things on your behalf and often communication is challenging especially if they choose to make it that way. 

The IRS requires a very detailed mileage log, so if you are ever audited, you run the risk of losing your mileage expense if you simply estimate.

(Yes, I understand comments provided are simply educational, I will consult with an attorney before moving forward.

I think you need to start by figuring out what you’re near term goals are - are you wanting to generate enough cash flow to offset W2 income, are you simply wanting to supplement your retirement, are you looking for significant tax advantages etc.