I have taken my team and your inputs into consideration and decided to back out of this contract to save me from future hassles.

Don't get hung up as a newbie with this "equitable interest" stuff, an equitable interest must be measurable, in financial terms and those $10.00 and other good and valuable consideration contracts can give you an equitable interest of $10.00!

I would seriously consider offering my home as a lease option at top of market value and top or even a little over of market rents (with the tenant/buyer covering the first $150 of maintenance/repair issues) with 3% consideration for a term of 18-24 months.

I'm looking to put an offer where the owner wants to stay for 2 months after closing so they can have the money for a down payment and time to buy another place.This is an investment property that I plan to live in for a few years before renting out.Are there any specific considerations that should be added to the contract.

In terms of the "one 1% rule" is anything below that something to walk away from without any further consideration?

They also require the investors to be considerably experienced.

I have also spent considerable time researching various sites for an answer, including BP.

They are usually not for 1st time multifamily investors, but sometimes considerations will be made depending on borrower and property strength.Hope that helps.

The $2500 towards purchasing the home is called 'option consideration', NOT a down payment.  

Needless to say this has impacted many of our projects and the timelines for contractors have stretched considerably.