@Brian Gibbons, in your opinion, since he's the owner and not the assignor (ie: investor like me), is the lease option still a bad choice (as long as he still complies with the NC lease option laws?)

I always make sure to comply with state descriptions as to what is damage vs. wear and tear.  

It’s possible to comply with the law, but still not provide good service for management clients.

The tenants will probably comply, in fact, be happy to do so, because they are in more than one lease violation.

Apparently, loan servicers are in a grey area with respect to complying with the rule.

If they haven't forwarded their mail, keep the envelope unopened in their file as proof that you tried to comply with the law.

I believe that areas to avoid are Druid Heights, Greenmount and North Avenue.To that end, I am nearing the completion of a RE sale in California and am searching for replacement properties in Baltimore that would meet the 2%-3% rule and comply with a 1031 exchange. 

Sometimes it is required to get creative to stay completely legal and above-board, while complying with the requirements of the title company.

If the demand they make is not in the lease, simply reply that you don't read where you are obligated to comply with their request in the lease. 

Either the seller will comply or they will not for the request.A 5-plex is a waste.