The building is concrete block and previous owners built on the side of it another "Wooden frame" store front which is "attached".Each unit is being rented out under market value, and decent condition.The property does not have a CO (calling town this week) but is in working condition and fully rented out. which is strange?

I very good price , a very good cash flow and a very good condition .

Custodians do not directly create such programs, as they are prohibited from providing legal and advisory services, so a different type of company will setup such a structure and most such companies have one or more custodians they work with on that piece.The IRA LLC structure is much more responsive and eliminates a lot of per-transaction fees, though of course creating the legal entity in the first place will cost more up front.  

In regulatory law definitions can originate from other sources so consider this:Under current federal law, there is a prohibition against overcharging consumers for goods and services (other than professional services).

The option can {many would say, should} contain the future Agreement of Purchase and Sale (APS), with all the terms and conditions of the future sale, laid out, as a Schedule to the Option agreement/contract.In exchange for the right to purchase the property at the {strike} price established by the option contract, an option fee is paid by the purchaser of the option to the writer/provider of the option.I would keep the two agreements separate (as if they are with two different people) and have no performance ties between them (i.e. no rent credits, no financing of the down payment, etc).  

You could probably just modify it for your own use. http://housing.ucsc.edu/cro/pdf/condition-checklist.pdf

Don't mean to offend but is it possible you got lucky with a paying tenant for a poorly located/conditioned unit?

I would spend some time in those areas if there are specific neighborhoods you like, drive em, note the condition of the properties, create a list, then direct mail those properties.

A house for $7k is probably not in livable condition and may not even have a certificate of occupancy, so you wouldn't even be able to live there while doing the work.  

Also, since the property is vacant, we knew the Seller would want to close ASAP (so as not to incur carrying costs for too long), so we proposed a 19-day closing (13 days from waiving the financing condition), which the Seller jumped at.All this to emphasize my original comment that it really depends on what you're interested in, and what your means are.