Essentially, while the trustee is held out to the world as the property owner, it is the beneficiary who exercises the powers of ownership.

There must be something of value passed to the party issuing the option.A credit for the option consideration can be offered if the TB exercises the option. 

There is no Purchase taking place until the Option is exercised. 

We spent so much money on medical bills we said holy crap we don't have enough money to stay retired!

Because your cash on cash return is really an exercise in opportunity cost without consideration of leverage and other tax benefits. 

I've got a lead on a very motivated seller with a vacant medical office building (roughly 3500sqft) and I've just got a few questions that I'd love to run by someone in the area. 

Now, lets say I have hypothetically $80k to play around with in real-estate, would it be a bad idea to exercise leverage where I maybe purchase three or four cashflowing properties (within a span of a year)?

However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law."

I like it so far but like I said, I haven't exercised it to it's full potential abilities yet.

Now you of course can discriminate against smokers and dogs (That are not medically prescribed) all you want.