I just want to make sure the Leasee/Buyer cannot claim any kind of ownership because of the credits and Option Fee. 

@Emerson Palame I dont have any experiance with painting flips myself but from what I have heard buying one color that you can use in not only all the common areas (living room, kitchen, hallways) in this current flip but any other flips in the near future.

What kind of lease is the person on?

If you mortgage yourself up to 50% then try for a new loan or a HELOC that is where you will be stopped.....but if you have the HELOC and its not being used as kind of a in case of emergencies then you will be okay if you find a great deal you could then use that money. 

The unit was 6 beds 3 baths 2,576 sqft  roughly for 80k only to find out it was just put under contract which kind of confused me if it's currently under contract its still listed as for sale!  

Very common....either;1) the house was listed below actual market value2) the bank’s bpo is inflated, no consideration for condition, etc.3) combination of the above 2

I haven’t done my first deal yet but I’ve been saving up to buy my first property at an auction coming up and I have a friend who kind of knows about real estate who is willing to partner with me. 

Thanks for the kind words.  

This is a pretty common misconception.

You have both kind of validated my feelings on this deal.