We ended up deciding to purchase due to our knowledge of the area - my wife grew up here - and were able to get the property for $35K plus closing costs ($10,000 less than asking).

It seems to me from everything I've read that it is, but before I seek out a real estate attorney, I figured I'd post here as there is so much knowledge on this site. 

He's absolutely right, you don't need to do the extra work of writing out a contract.

I try to fix HVAC problems in 24 - 48 hours so they can have a comfortable home at minimal extra cost to me.

I was considering paying the extra money to have a full appraisal done bc I know it would be worth the expense.

Do you only accept tenants if you “think” they can pay their bills and just as an extra safety precaution you get a co-signer?

In the right short-term situation where you can buy them out quickly by refiing the property as you suggest I think it works well but those deals are very hard to find for people with deep experience and connections in that local market so for someone with no experience and no local knowledge it's going to be nearly impossible.

Aside from being responsive and knowledgeable, she is also an experienced landlord and property manager and an expert in lease/purchase and owner financing.

I budgeted for extra strips, just in case mistakes are made or we discover some imperfect strips during the installation process.

I am looking to learn, network, and ultimately grow my real estate knowledge.