I would guess over 90% of regular renters don't know about or fight for a rent to own arrangement in the beginning.

Currently I'm asking for a full month's rent ($500/each)....I would look to ask for at least 3 month's rent from the bad egg ($1500 total).3.

Have you done any full Renovations?

We converted the property from a 3BR 1BA into a 2BR and 2BA with a full master suite with walk in closet and stand up shower with double vanities.

That should stifle his desire to try and fight this.Put in the letter that cashing the check constitutes his agreement with your repair estimate.

I did this because I have aspirations to invest internationally in several locations in central and south America and didn't want to just talk the talk or be a wantrepreneur, rather put myself in the field and put the building blocks together myself..I am currently waiting for the CA Bureau to approve my license application so I can take the test to receive my RE license (completed the course work in Spring of 2018 while going to school full time, working part time).

Starting in this third year, after the refinance, I would make $2032 a year after all expenses, which would amount to ~20% ROI based on the $10,000 paid to the seller and ~9.2% ROI based on the full $22,000 put in (including repairs and money lost in the first year).

I am also a member of my local REIA.I hold an MBA and I have been a self-employed full-time digital marketing consultant for 15 years and real estate is only a part-time occupation for me, although lately, it seems to be consuming more and more of my time.

I do a lot of full gut rehabs. 

The yard is full of car parts and furniture (or I like to think of it as potential).