I figure what better time to jump in than when the market is entering a pullback.

Apparently the origination fee was not entered into the closing documents correctly. 

@Reno Frazier, That's a great question that I hear from almost everyone entering the Real Estate Investment arena. 

Because of the asinine renter and squatter rights in California, it is illegal to bar the squatter from entering the property or to turn off utilities.

Even if your neighbor meets all the WA requirements to adversely possess a portion of your land, a recent change in WA law (2011) requires that the adverse possessor repay you a prorated portion of the property taxes for the land they adversely possessed.RCW 7.28.083Adverse possession—Reimbursement of taxes or assessments—Payment of unpaid taxes or assessments—Awarding of costs and attorneys' fees.(1) A party who prevails against the holder of record title at the time an action asserting title to real property by adverse possession was filed, or against a subsequent purchaser from such holder, may be required to:(a) Reimburse such holder or purchaser for part or all of any taxes or assessments levied on the real property during the period the prevailing party was in possession of the real property in question and which are proven by competent evidence to have been paid by such holder or purchaser; and (b) Pay to the treasurer of the county in which the real property is located part or all of any taxes or assessments levied on the real property after the filing of the adverse possession claim and which are due and remain unpaid at the time judgment on the claim is entered.(2) If the court orders reimbursement for taxes or assessments paid or payment of taxes or assessments due under subsection (1) of this section, the court shall determine how to allocate taxes or assessments between the property acquired by adverse possession and the property retained by the title holder.

So we're waiting until this situation shakes out before we enter the house and begin negotiations. 

Landlord has the right to enter the Premises for performing inspections inside and out, making repairs, alterations or improvements, in the case of an emergency, due to abandonment, or pursuant to a court order.

When I enter each units monthly rent payment do I do this as a sales transaction?

If you are a tenant want to enter into a lease option, the seller must want to sell. 

So if you enter the property value and the loan amount, when you click submit the system will tell you if it's eligible for a loan.