I'm sure there are ways to structure the lease to take these things into account so I'll let the more experienced members speak to that, but I would personally be very wary. 

Especially in the lower end asset class's most west coast investors really don't understand the dangers in a place like Memphis with rehab.. being theft and actual physical danger if they are in the wrong hoods and don't know better.

I have formulated my business structure; plan. i barely have enough though to cover living costs.

Unfortunately, I no longer comment on lease options (or tax matters or entity structures or...) 

I want to make an offer on a REO using a LLC (or whit a S Corp ) as a purchaser, once they accept the offer I will sign on behave of the LLC in order to get the contract, now that I secure the deal I will talk to my p...

Possible, but you need legal advice to structure things correctly to stay out of securities law trouble (federal exemption and compliance with state regulations) AND to know how to legally make any offerings available to prospective investors.  

If the property contains a residential structure, they must also pay the increased value created by the investor's preservation improvements (repairs, basically) plus 12% interest, and reimburse the investor for casualty insurance premiums, plus 12% interest.The investor must send the bank certified mail notice of the tax sale.

And yes, I am hiring this firm to get the deal together, including bringing lenders to the table and securing loans with the new structure for acquisitions.What type of firms you are referring to?

Minimum recommended coverage:Building, Business Personal Property, Business Income, Employee Dishonesty, Money and Securities, Accounts Receivables, Computers, Contractors’ Equipment, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Nonownership Auto, Workers Compensation Other coverages to consider:Equipment Breakdown, Computer Fraud, Employment-related Practices, Automobile Liability and Physical Damage

You may want to review your late fee structure to make sure it would seem reasonable if you had to go into court to collect those fees.