How are you going to pay for the rehab costs and generally there are always unforseen problems that will increase your cost basis.I've written a few lease options and the only one that actually closed in the one year the house I sold appreciated about $100k which all went to the buyer.

Is this amount the tax I would have owed if I just sold the property and didn't do a 1031 exchange ((ie. capital gain amount + depreciation recapture) - (closing costs and fees))?   

Deposit paid -> lease sign -> copy to them -> keys once they pay rent in full and deposit in full (if enforceable).

While i was in i owned real estate in jacksonville FL, which i rented for 3 years and sold last fall.

It’s a Florida certificate, I petitioned the tax deed and the property got foreclosed and then sold by the county on auction.

The kitchen and baths should be updated but every incremental dollar you spend over what is needed to get the property sold comes from your profit.     

Nobody is going to OOOOH and AHHHH about the fact that inside the wall plumbing has been replaced as it is not visible and long as it is currently working as it should I would not put money here but put it elsewhere to attract buyers to get property sold ASAPJust my .02 cents..Chris

I can easily filter for out of state owners, and properties which have not sold within the past 15 years (high-equity owners). 

Also, is the agreement something we should just write up ourselves and both sign each copy?

The most important part of the process is establishing a solid ARV based on recently sold comps.